Carnival Upgraded To Buy As Cruise Demand Rebounds

Carnival Corp. was upgraded to buy from hold at Deutsche Bank on Monday, with analyst Richard Carter predicting the cruise company beats near-term consensus estimates amid low fuel costs and rebounding bookings. Deutsche Bank's 12-month price target of $55.30 implies a 13% increase from Friday's closing price. Shares of Carnival Corp. climbed 3.1% to $50.45 in premarket trade. "This update will not only underpin near term consensus forecasts, but should incrementally build confidence for outer years and the double-digit [return on capital employed] target," said Carter. The analyst also cited strong growth in demand for cruises in China.