- Citi analyst James Ainley downgraded Carnival Corp CCL to Neutral from Buy with a price target of $24.50, down from $34, suggesting a 10% upside.
- While he continues to believe in a recovery for the cruise industry, Ainley's comparative analysis of the pricing environment, ship pipeline, earnings quality, returns, and valuation suggests that Norwegian Cruise Line Holdings Ltd NCLH will deliver more attractive returns to shareholders relative to Carnival.
- The analyst added that Carnival has delivered slower revenue and earnings growth over the last 10 years and its decision to exit older, less efficient vessels and smaller pipelines will limit its revenue recovery versus Norwegian.
- Price Action: CCL shares are trading lower by 0.94% at $22.08 in premarket on the last check Monday.
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