TUI: stock falls after UBS downgrade

(CercleFinance.com) - TUI shares fell more than 1% on Tuesday after UBS downgraded its rating on the German tourism company, as the broker turns incrementally more cautious on tour operators.


UBS analysts have cut their rating on the stock from "neutral" to "sell" and have lowered their target price from 290 pence to 110 pence.

In a note to clients, they said that they expect a slower recovery in leisure traffic, anticipating TUI's business to shrink in the post Covid-19 world.

TUI may need to further waive or renegotiate the covenants or recapitalise the business, they pointed out.

The London-listed shares were down 1.3% after these comments. They have crumbled 72% year-to-date.

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