TUI: broker downgrade weighs on stock
(CercleFinance.com) - TUI AG shares are down over 3% at 1,266.
5 pence in late-morning trading on Friday, after UBS downgraded the travel company from "neutral" to "sell".
In a note to clients, UBS said it expects downward pressure on revenue per available room (RevPAR) of Riu, the group's Spanish hotel chain.
"Hotel earnings are at a peak, justifying multiple contraction," the broker noted.
UBS also cut its target price for TUI, now expecting 1,200 pence compared to 1,600 pence before.
Last month TUI said its financial year 2017/2018 to end-September closed out "in line with its expectations," and reiterated its full-year guidance.
The group will report its full-year results on Thursday 13 December.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
5 pence in late-morning trading on Friday, after UBS downgraded the travel company from "neutral" to "sell".
In a note to clients, UBS said it expects downward pressure on revenue per available room (RevPAR) of Riu, the group's Spanish hotel chain.
"Hotel earnings are at a peak, justifying multiple contraction," the broker noted.
UBS also cut its target price for TUI, now expecting 1,200 pence compared to 1,600 pence before.
Last month TUI said its financial year 2017/2018 to end-September closed out "in line with its expectations," and reiterated its full-year guidance.
The group will report its full-year results on Thursday 13 December.
Copyright (c) 2018 CercleFinance.com. All rights reserved.