TUI: Oddo upgrades stock
(CercleFinance.com) - Oddo believes that the TUI share is trading at an excessive discount, which is difficult to justify, even in the current context.
The broker has therefore upgraded the share to Buy (vs. Neutral previously), while trimming its corresponding target price to 13.40 euros.
Oddo says in its daily equity review that the share's recent (major) derating, which is based on the slowdown of the TO division alone, is, in its opinion, exaggerated, especially as the performance of the 'Holiday Experiences' division has been largely avoided,
Analysts added that despite a more challenging context (relative to a year ago), the risk-reward ratio is becoming much more attractive (worst case at 11.5 euros, dividend yield 7.6%).
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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.
The broker has therefore upgraded the share to Buy (vs. Neutral previously), while trimming its corresponding target price to 13.40 euros.
Oddo says in its daily equity review that the share's recent (major) derating, which is based on the slowdown of the TO division alone, is, in its opinion, exaggerated, especially as the performance of the 'Holiday Experiences' division has been largely avoided,
Analysts added that despite a more challenging context (relative to a year ago), the risk-reward ratio is becoming much more attractive (worst case at 11.5 euros, dividend yield 7.6%).
Copyright (c) 2019 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.