Nomura: Lowering EPS on Weaker Euro and Fuel Prices

While bullish on the cruise industry, Nomura Securities International has reduced its earnings estimates for Carnival Corporation and Royal Caribbean Cruises for 2102 and 2013 due to a weaker euro and higher fuel costs.

The financial firm pointed out that its lower estimates do not reflect deteriorating operating fundamentals.

The yield forecast for 2012 remains at a positive 2 percent, which, Nomura stated, offers a compelling upside, as long as the U.S. economy continues to expand.

Nomura’s price targets through the half of 2013 are $39 for Carnival, compared to $40 before, and maintained at $36 for Royal Caribbean, an upside of 19 percent and 44 percent on today’s share prices.

Carnival has announced its year-end and Q4 earnings call on Dec. 20.

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