Carnival awaits investor reaction
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Carnival Corporation is awaiting investor reaction to the news that it would be spending US$300 on a fleet-wide improvement programme.
The company, which has undergone a period of turbulent press coverage since February’s Carnival Triumph incident, reported a “double digit” drop in bookings in the immediate aftermath, according to chairman Micky Arison.
Bloomberg Businessweek quoted Stifel Nicolaus capital market analyst Steven Wieczynski as holding his ‘buy’ rating, writing that improving demand for cruise ship services would keep Carnival’s free cash flow going in the long term.
“We continue to believe current levels present investors with an attractive entry point into an above-average three- to five-year total return story,” Wieczynski wrote. He added that “recent one-off events” are likely to cloud the company’s results in the short term, but cash flow should keep going in the long term.
The news service also reported that that Carnival’s shares were up 76% to US$33.98 on Thursday. The past year has seen share prices range from US$30.65 to US$39.95.