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    MARKET EDGES

    Identify global risks and opportunities with essential macro intel using Hedgeye’s Market Edges.

We’re taking CCL off the Best Ideas List as a Long.

Following a near 20% increase in stock price over the past 6 months, CCL’s valuation of 16x 2015 EPS looks fair.  Near-term risks include:  1) continued choppiness in Caribbean pricing for the industry and 2) increased Macro risks including consumer spending pressure and higher oil.  We remain constructive over the intermediate term as CCL yields should outperform Street expectations as the brand continues to regain lost value and brand rebuilding costs should abate.