Carnival shares declined on Thursday, after analysts at SunTrust abandoned their bullish outlook on the cruiseline company’s shares.
According to SunTrust analysts, the company "lacks near-term catalysts".
In a research note to clients, SunTrust analyst C. Patrick Scholes wrote that he is giving up the buy rating on Carnival, following a survey of travel agencies that implied reduced demand for Carnival vacations relative to its peers. Carnival is generating lower sales compared to its competitors, in particular Norwegian Cruise and Royal Caribbean.
Scholes also slashed his one-year price target on Carnival shares to $47 from $58.