Shares of Carnival Corp. CCL, -6.66% are off 1.6% in morning trading Monday after Wells Fargo analyst Timothy Conder downgraded the cruise-line stock to underweight from overweight. Based on the company's recent disclosures about the state of its business amid the COVID-19 outbreak, he expects that the company will have to issue $4 billion to $5 billion in equity. "While somewhat expected, this will be meaningfully dilutive to existing shareholders," Conder wrote. "As currently capitalized (post $3 billion expanded revolver draw), we believe the company will violate its Interest coverage >3x covenant during FY20." He lowered his price target to $6 from $55. Carnival shares have lost about 75% so far this year as the S&P 500 SPX, -1.15% has dropped 30%.