Broker snap: Numis sees 'inflection point for sentiment' at Carnival

20th Dec 2013 10:35

Cruise operator Carnival's full-year results released on Thursday could be an 'inflection point for sentiment', according to analysts at Numis Securities.Nevertheless, the broker has left its 'hold' rating and 2,250p target price in place.Results for the 12 months to November 30th came in better than expected after earning per share of $0.04 in the fourth quarter beat the company's own guidance given in September. This was helped by strong-than-estimated revenue yields."The key messages from yesterday's FY13 results for Carnival, in our view, were that: perception of the Carnival brands is recovering more quickly than expected; recent booking patterns have been encouraging with Q4 yields ahead of expectations; and costs are being tightly managed with guidance for FY14 much improved," Numis said.Looking ahead to 2014, Carnival said that advance bookings are behind last year but it is catching up on volumes and gaining momentum.Numis said: "Management, understandably, remains cautious ahead of the peak 'wave' booking period but we believe that investor sentiment for the stock may now be near an inflection point."The company expects to earn around $1.40-1.80 a share during the year to November 2014, compared with $1.58 for the year just gone. Analysts at Numis currently expect a figure closer to $1.74, compared without the consensus forecast of $1.60.Carnival was trading 6.06% higher at 2,453p by 10:53 on Friday.BC