TUI: stock up with broker comments
(CercleFinance.com) - Going against the grain in London (FTSE 100 -0.
6% just before noon), the share of tour operator TUI is up 1.2%, following favourable comments by Morgan Stanley, which has confirmed its "overweight" recommendation on the share, along with target price of 1150 pence.
A positive call with management and "channel checks" have led the broker to raise its FY 2019 EPS estimate by 6%, close TUI's own guidance.
"The FY20 target of nearly neutral FCF post dividends is encouraging, but we think the dividend policy may be reviewed given tight cover," the broker says, adding that the share's valuation is "attractive".
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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.
6% just before noon), the share of tour operator TUI is up 1.2%, following favourable comments by Morgan Stanley, which has confirmed its "overweight" recommendation on the share, along with target price of 1150 pence.
A positive call with management and "channel checks" have led the broker to raise its FY 2019 EPS estimate by 6%, close TUI's own guidance.
"The FY20 target of nearly neutral FCF post dividends is encouraging, but we think the dividend policy may be reviewed given tight cover," the broker says, adding that the share's valuation is "attractive".
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.