Carnival downgraded to "perform in line"

21.06.07 - Guzman & Company

NEW YORK, June 21 (newratings.com) - Analyst Jake Balzer of Guzman & Company downgrades Carnival Corp (CCL) to "perform in line," while reducing his estimates for the company. The target price has been reduced from $62 to $60.

In a research note published yesterday, the analyst mentions that the downgrade in rating is based on valuation. The company has reported its 2Q EPS ahead of the estimates and the consensus. Carnival has reduced its EPS guidance for 2007 to $2.85-$2.95 to reflect higher fuel prices. The EPS estimate for 3Q has been reduced from $1.71 to $1.64.