Cruise Powerhouse Carnival Corp. Commences Intermediate Ratings

Merrill Lynch said on Monday it had started coverage of Carnival Corp., the world's largest cruise line operator, with "intermediate" and "long term accumulate" ratings.

Merrill said in a research note Carnival had a leading and growing market share in the expanding cruise industry, and both the company's and industry's prospects are reinforced by high consumer satisfaction levels and strong value ratings.

It added that it had a 12-18 month price objective of $32 for Carnival - whose shares closed on Friday at $27.59 on the New York Stock Exchange and have a 52-week range of $18.31 to $34.93.