TUI: BofA raises target price
(CercleFinance.com) - BofA Securities has confirmed its “buy” recommendation on TUI shares, raising its target price for them from E10.
2 to E12.5, pointing to resilient demand, light growth potential in assets and resolved balance sheet issues.
The broker notes that the German tourism group unveiled 2024 EBIT in line with consensus and a sales growth forecast above expectations, as well as an improvement in its gearing ratio.
BoA raises its 2025 EBIT forecast by 1% to E1,408m, thanks to lower debt. TUI shares are trading on a 2024 EV/EBITDA multiple of 2.8x according to analysts' estimates, well below the 10-year average of 5x, the broker continues.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
2 to E12.5, pointing to resilient demand, light growth potential in assets and resolved balance sheet issues.
The broker notes that the German tourism group unveiled 2024 EBIT in line with consensus and a sales growth forecast above expectations, as well as an improvement in its gearing ratio.
BoA raises its 2025 EBIT forecast by 1% to E1,408m, thanks to lower debt. TUI shares are trading on a 2024 EV/EBITDA multiple of 2.8x according to analysts' estimates, well below the 10-year average of 5x, the broker continues.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.