- CCL’s P/E valuation premium over RCL has widened to its highest level since Carnival’s acquisition of Princess in 2002.
- Historically, CCL has a 2-3x premium over RCL on P/E valuation. That spread has risen sharply in the past few months after narrowing in the midst of the Costa Concordia tragedy.
- We expect the spread to narrow in the intermediate term due to RCL’s pricing outperformance for the rest of CY 2012.
