We think the shares are undervalued, but the road to improvement could be rocky.
The toymaker was hit by a decline in retail sales, but we see improvement after the first half of the year.
Earnings declines are slowing but profits remain depressed at the no-moat retailer.
Despite slower yield growth, we expect operating cash flow to still rise.
We're not changing our fair value estimate as the firm faces a highly competitive retail industry.
Even with a housing slowdown, the wide-moat retailer is well positioned for continued growth.
Despite the Frances holding more than 70% of the voting power to affect the transaction, we believe there are a few mitigating factors that could delay a formal bid.
It isn't all good news, but we think the benefits outweigh the risks.
Despite company commentary suggesting that yield growth is slowing, nothing warranted imminent concern about Carnival's ability to drive demand creation or manage its cost structure.