Carnival Downgraded to Sell With 30% Decline in Stock Predicted

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Without any real indication of when cruise ships will begin sailing again, Berenberg analyst Stuart Gordon believes Carnival (NYSE: CCL)(NYSE: CUK) is in an untenable situation, one he says is “unsustainable.”

Because service remains suspended, there’s no timetable for when it will be able to resume service at meaningful levels. That plus Carnival’s surging levels of debt led Gordon to downgrade the cruise line leader to sell from hold, and assign a $14 per share price target.

Although that’s a 40% hike from his prior $10 per share target, it is 30% below where Carnival currently trades, indicating a significant pricing downdraft awaits the cruise line.

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