Carnival upgraded to Overweight from Equal Weight at Morgan Stanley

Morgan Stanley analyst Jamie Rollo upgraded Carnival (CCL) to Overweight from Equal Weight with a price target of $31, down from $33. The firm cut the company’s earnings estimates to reflect softer revenue yield and higher fuel prices. However, the stock’s 28% drop year-to-date from the peak exceeds the lowered estimates, the analyst tells investors in a research note. Morgan adds that Carnival has minimal Middle East exposure. The firm sees an attractive risk/reward at current share levels.