TUI: UBS upgrades shares to 'neutral'
(CercleFinance.com) - UBS has upgraded its rating on German tourism group TUI from "sell" to "neutral," saying that the Thomas Cook liquidation brings relief to sector overcapacity.
In a note to clients, the Swiss broker said it sees "short term tailwinds" to profits and cash, but warns that structural issues in the tour operator industry will likely remain. UBS also sees downside to consumer confidence.
UBS has set a new 900 pence target price, up from 740 pence previously.
TUI shares are currently up 3.9% at 936.2 pence in Zurich after the travel company posted "reassuring" full-year results this morning.
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