Casinos & Hotels
Credit Suisse Sees Huge Upside in Cruises and Theme Parks
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The entertainment sector, particularly travel and leisure, can be fun to be involved in and can be great fun for consumers. That being said, sometimes it can be a hard sector for investors to make profits. After all, a theme today does not always stay popular, and the overhead is generally considered high. It turns out that Credit Suisse has issued very favorable coverage on the cruise line and theme parks on Tuesday.
Credit Suisse’s Ben Chaiken assumed coverage of many cruise line and theme park owners and operators with Outperform ratings. Investors need to consider that Credit Suisse’s coverage technically is not making changes to the firm’s prior price targets and earnings estimates. Some investors might even consider these as “reiterated calls” rather than brand new coverage, at least until they see the implied upside here.
Credit Suisse’s Outperform ratings are generally considered as an outperform against other peers rather than in broad market performance, but investors could be handed big upside if Chaiken’s sector view proves right.
Here is how much upside Credit Suisse thinks you can make off of cruises and theme parks.
Carnival Corp. (NYSE: CCL) was started as Outperform and was given a target price of $60.00. This was versus a $47.96 prior close, implying 25% upside, before considering the dividend yield of about 2.5%. Carnival has a consensus analyst price target of $60.06 and a 52-week trading range of $40.52 to $55.77. So far in 2016, the stock is down 11%, with a total market cap of $38 billion.
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