Citi Maintains Buy on Carnival

Citi is out with its report today on Carnival CCL, maintaining Buy. In a note to clients, Citi writes, "Trading at around 12.5x and 10x earnings for CCL and RCL RCL respectively, we believe both stocks are incorporating fairly negative sentiment. However, we think trends are not as bad as investors fear. In addition, we like the improving supply/demand dynamic, which should benefit the cruiselines over the next few years. As a result, we think the cruiselines offer an attractive risk/reward profile to investors." At the time of posting, shares of CCL were trading pre-market at $35.76, down 0.69% from Wednesday's close.