Carnival "equal weight," target price reduced

21.09.07 - Lehman Brothers

NEW YORK, September 21 (newratings.com) - Analyst Felicia R Hendrix of Lehman Brothers maintains her "equal weight" rating on Carnival Corp (CCL), while revising her estimates for the company. The target price has been reduced from $53 to $52.

In a research note published this morning, the analyst mentions that the company has posted its F3Q07 results ahead of expectations, driven by improvement at its Caribbean operations. Carnival has revised its EPS guidance for FY07 from $2.85-$2.95 to $2.92-$2.94, with net yields expected to rise by 1%-2% and net cruise costs by 3%-4%. The EPS estimate for 2007 has been raised from $2.85 to $2.94 and the EPS estimate for 2008 has been reduced from $3.25 to $3.15, with higher net yields being offset by increased fuel costs.