Carnival slips after analysts warn on choppy recovery

Carnival Corporation (NYSE:CCL) traded lower after the cruise line operator received a cool reception from analysts to its FQ1 earnings report.

Jefferies kept a Hold rating in place after it warned that the cruise line industry recovery remains choppy.

Analyst David Katz: “The quarter reflects the numerous challenges confronting CCL through the recovery, which challenge the earnings visibility and equity value, in our view. With demand and pricing likely progressing higher, as with the broad consumer landscape, the rising input costs for CCL are generally further complicated by the cost of fuel and lingering leverage.”

Katz and team expect the lower-than-expected quarter to result in a neutral to negative reaction to CCL from investors.

Elsewhere on Wall Street, Stifel lowered its price target on CCL to $30 from $33, but kept a Buy rating in place.

Shares of Carnival (CCL) fell 1.22% premarket on Wednesday after trimming 0.11% on Tuesday.

Dig into the Carnival (CCL) earnings call transcript.