This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Bullish breakout above May falling highs. Company continues to drive earnings growth above the broader market according to brokerage Berenberg (27 June). Analysts at SunTrust Robinson Humphrey say (26 June) consumer demand trends are still encouraging for Carnival. Positive read-across from competitor Norwegian Cruise Lines, which reported positive results yesterday, beating estimates and raising guidance. Recent spate of good weather positive for cruise industry.
Risks to CCL shares include higher oil prices pushing up fuel costs, any global events that discourage people from travelling (terrorism, weather, accidents), an economic recession that dents consumer confidence and broker downgrade.
Brokers are overwhelmingly positive on Carnival, with 83% of analysts saying Buy, 17% saying Hold, and none suggesting “Sell”. This is supported by 100% of brokers seeing upside from current levels to a 12-month target price of 5467p, well above our short-term target of revisiting the 10-month trendline of falling highs.
Next Event: Ex-Div, 23 August; Q3 Results, 25 Sept (est.)
Latest Broker 12-Month Consensus: 83% Buy, 17% Hold, 0% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| Share | 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr |
| Perf % | 4.8 | 7.1 | -4.2 | -4.0 | -12.7 | 28.1 | 31.9 | 113.8 | 86.9 |
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Prepared by Michael van Dulken, Head of Research