Carnival: Credit Suisse downgrades stock.
(CercleFinance.com) - Credit Suisse has downgraded its rating on Carnival from "outperform" to "neutral" and has cut its target price from 78 dollars to 70 dollars, in the wake of the cruise giant's adjusted estimates, wih the group faced with prospects that are deemed to be uncertain.
The broker's analysts highlight significant growth in the sector supply (+6.1% p.a. on an average over 2017-2022), as well as threats to demand in the group's three main markets (Caribbean, Mediterranean and China) in 2018.
As a result of this, Credit Suisse has a more conservative estimate for growth in Carnival's yield in 2018 (1.5% vs. 3%), with the broker reducing its EPS estimate by 10% (7% due to performance and 3% due to fuel prices).
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The broker's analysts highlight significant growth in the sector supply (+6.1% p.a. on an average over 2017-2022), as well as threats to demand in the group's three main markets (Caribbean, Mediterranean and China) in 2018.
As a result of this, Credit Suisse has a more conservative estimate for growth in Carnival's yield in 2018 (1.5% vs. 3%), with the broker reducing its EPS estimate by 10% (7% due to performance and 3% due to fuel prices).
Copyright (c) 2017 CercleFinance.com. All rights reserved.