Carnival price target lowered to $16 from $17 at Macquarie

Macquarie analyst Paul Golding lowered the firm’s price target on Carnival to $16 from $17 and keeps an Outperform rating on the shares. Fuel prices have moved up significantly since the Q2 earnings reports, leading the firm to bring down estimates for Carnival ahead of the Q3 results, the analyst tells investors in a research note. Macquarie estimates the cost of fuel in the period to have averaged $677/mt versus the company’s guidance of $620. It expects fuel to weigh during the upcoming results and guidance, but says the commentary throughout the year and visibility around a solid booked position and strong pricing give the firm confidence that management “can continue to deliver.”