Carnival shares jump on Deutsche Bank upgrade

22nd Jun 2015 09:17

Shares in Carnival rose 4% on Monday after Deutsche Bank raised the stock to 'buy' from 'hold' and lifted the price target to 3,525p from 3,400p.The bank said it expects Carnival's second-quarter earnings to be above the upper end of the company's guidance range and for the group to demonstrate further bookings and pricing recovery coupled with more operational momentum in its core Carnival brand."Overall in our view this update will not only underpin near-term consensus forecasts, but should incrementally build confidence for outer years and the double-digit return on capital employed target," said DB.Key risks to the bank's view includ negative economic changes, rising capacity growth ahead of expectations and oil price shocks.At 09:17, shares were up 4% at 3,290p.