FTSE 250 (MCX)

Down
Value:
22,108.55
Change Today:
-382.31

Deutsche Banks starts Tui coverage with 'hold' rating

By Sean Farrell

Date: Thursday 08 Apr 2021

LONDON (ShareCast) - (Sharecast News) - Deutsche Bank recommended sticking with Tui shares as it initiated coverage of the world's biggest travel and tourism company.
The bank gave Tui's shares a 'hold' rating with a price target of €4.40 or 375p.

The Anglo-German tour operator has been hit hard by Covid-19 restrictions, which have crushed the market for foreign holidays. In March the company trimmed its capacity for the peak summer months to 75% of 2019 levels from 80% though it said bookings were encouraging and showed strong pent-up demand for travel.

"Tui is a fully integrated leader in the tour operator business in Europe, with the markets and airlines divisions funnelling traffic to the holiday experiences divisions," Deutsche analyst Andre Juillard said in a note to clients. "Tui is a highly seasonal business, with almost all of its full-year profits earned in Q4 (Jul-Sep), giving the group's earnings a skewed risk profile if the environment remains as it is now."

Shares of Tui fell 1.1% to 392.8p in London at 10:49 GMT.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Price Data

Price 22,108.55
Change Today -382.31
20-Apr-21 Close 22,108.55