Jefferies Initiates Coverage on Carnival as a “Buy” (CCL)

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Cruise line operator Carnival Corporation ( CCL ) on Friday saw its coverage started with a "Buy" rating by analysts at Jefferies & Co.

The firm also set a $40 price target on CCL, suggesting a potential 25% upside to the stock's Thursday closing price of $31.05.

A Jefferies analyst commented, "In a low-growth economic environment, we think a combination of low capacity growth and hence lower capex, proven cost control and demographics/value for money will push ROIC above WACC for both companies. This is not reflected in current share prices."

Carnival shares rose 41 cents, or +1.3%, in premarket trading Friday.

The Bottom Line
Shares of Carnival ( CCL ) have a 3.22% dividend yield, based on last night's closing stock price of $31.05. The stock has technical support in the $28-$29 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Carnival Corporation ( CCL ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: CCL

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