Carnival upgraded to "hold"

03.11.08 - Deutsche Bank

LONDON, November 3 (newratings.com) - Analysts at Deutsche Bank upgrade Carnival Plc (CCL-GBX) from "sell" to "hold." The target price has been raised from 1550p to 1600p.

In a research note published this morning, the analysts mention that the company has announced the suspension of the dividend for 2009 and is likely to face another tough year in 2010. Carnival?s net yield and EPS are likely to decline in 2010, Deutsche Bank says. The reported closure of the company?s UK contemporary brand, Ocean Village, depicts the difficulty in penetrating the European markets, the analysts add. The upgrade reflects the company?s low stock valuation in relation to the P/E multiples for 2010.