TUI: shares up after reassuring trading update, UBS upgrade
(CercleFinance.com) - In the midst of the Thomas Cook crisis, its German rival TUI reported its pre-close trading update, at end-September, with numbers "quite reassuring" analysts say.
The Summer 2019 season is closing out "in line with expectations," TUI said, and the group reiterated its fiscal year 2019 underlying EBITA growth guidance of approximately 26%, from 1.18 billion euros in the previous fiscal year.
"Momentum appears to have improved lately, which bodes well for the crucial late season," said analysts at Paris-based broker Oddo BHF. "The group's fundamentals remain healthy, despite the disruptions linked to the 737 MAX grounding," Oddo added.
The French broker said the vertically-integrated business model of TUI remains resilient and enables the group to limit the impact of the currently challenging environment. Oddo has a "buy" rating on the stock.
This morning UBS raised its rating on TUI to "neutral," saying that Thomas Cook's liquidation brings relief to overcapacity.
TUI will report its full-year results to 30 September on 12 December. Its shares were up 1.6% this morning in London.
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