Carnival’s (NYSE: CCL) price may go to zero in the worst-case scenario, they said. In a research note acquired by Bloomberg, analysts warned that another demand shock from a recession may cause the cruise line’s shares to lose all of their value. According to the analysts, the group’s liquidity might “soon diminish” if bookings stagnate or consumers remove deposits during a recent spate of cancellations.
Shares of Carnival fell 7.6% in premarket trading to $9.55. This year, the stock has lost over half of its value. Stifel and Wells Fargo both reduced their price estimates for Carnival this week after the company reported strong revenue and booking gains last week, but the stock has already fallen back down.
As for the shares, Stifel maintained a Buy recommendation while Wells Fargo maintained an Underweight rating. According to FactSet, 32 percent of the 25 analysts that follow the company have given it a Buy equivalent rating, 48 percent have given it a Hold rating, and 20 percent have given it a Sell rating.
The post Carnival Cruise Lines Stock Fell in Premarket Trade on Wednesday After Morgan Stanley Dropped Its Price Target to an All-time Low appeared first on Best Stocks.
