Update21 Jun 2009 08:37
Shares in Carnival (CCL) cruised 100p higher to 1,671p after Thursday's second quarter trading update was received positively by brokers. Charles Stanley said the second quarter figures were ahead of prior guidance and market consensus, despite being affected by weak pricing. "Significantly, however, management suggested that pricing had probably troughed, with some signs of recovery in recent weeks," the broker noted. Charles Stanley cut its 2009 earnings per share forecast by 6.8% to 205 cents, putting it in the middle of the consensus range. Though it reckons the outlook is easing for Carnival, it retained its 'hold' recommendation. "Carnival remains the No.1 player in a global duopoly, has a strong balance sheet and is highly cash generative. We continue to believe that cruising is a structural growth industry. Near term visibility on yields and earnings, however, is poor. On balance, the valuation looks about right," Charles Stanley concluded. Numis Securities was a little more optimistic, and raised its price target for the stock from 1,627p to 1,748p.