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Carnival Shares Get Some Relief After Saudi Fund Buys Stake

Carnival Corp.’s (CCL) shares climbed 21% after Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), on Monday disclosed an 8.2% stake in coronavirus-hit Carnival Corp.

PIF made the offering for Carnival’s 43.5 million shares worth about $369.3 million on March 26, according to the SEC filing. The investment makes PIF the second-largest investor in the world’s biggest cruise line.

Since the start of the year, Carnival has seen its shares lose more than three-quarters of their value as the coronavirus pandemic has forced cruise ship companies to halt operations and suspend cruises.

Wall Street analysts take a cautious stance on Carnival stock. The analysts’ Hold consensus rating is split into 8 Holds, 2 Sells and 1 Buy. The $40.88 average price target suggest a 300% upside potential should it be met in the coming 12 months. (See Carnival’s stock analysis on TipRanks)

PIF, which manages over $300 billion in assets, is also an investor in Uber Technologies (UBER) and electric car company Lucid Motors. It also has a stake in Softbank’s $100 billion Vision Fund.

Last week, Carnival said it was raising $6.25 billion in debt and equity, while also suspending its dividend payments, in an effort to cope with the financial crisis induced by the coronavirus impact.

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Sharon Wrobel
Sharon Wrobel is a journalist and writer with two decades of experience covering financial news in the U.S., Europe and the Middle East. Her work has appeared in global publications including The Financial Times, Bloomberg and The Jerusalem Post.

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