Carnival: Oddo reduces target price

(CercleFinance.com) - Oddo BHF reonstates its "underperform" rating on Carnival shares, having reduced its target price for them from 950 pence to 720 pence, after analysts reduced their estimates for 2023 and 2024, after the cruise company's 2022 results were deemed "mediocre" by the broker.


It says that the sector is still struggling, and has not benefited from the recovery in activity in the 2022 summer season, considering that constraints were lifted much later than in other leisure sub-sectors (notably hotels).

While Oddo considers the share's valuation as "very low", its risk/reward does not seem attractive given uncertainties and the lack of visibility on 2023, when there could well an economic slowdown, or even recession.



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