J.P. Morgan has lowered its price target for Carnival Corporation stock to $23 from $25, while maintaining a neutral rating.
“We’re lowering our (2021) estimates to capture the latest updates to ongoing global cruising suspensions,” the bank said, in a note to investors.
“There’s been no official guidance out of the CDC since the conditional sailing order was put in place on October 30th, 2020, and as of now it’s unlikely revenue-sailings can start in the U.S. before June.”
The note said that the bank expected the Alaska season to be “largely cancelled” following Canada’s cruise ban.
“As for a silver lining, this ban should further build on what is likely already substantial pent-up cruise demand for ’22. Cruise stocks were unfazed by the announcement, which to us, supports the view that the market is continuing to look through to 2022 fundamentals, focusing on demand longer-term and broader virus/vaccination data nearer-term.”