Thomas Cook: Oddo cuts target after profit warning
(CercleFinance.com) - On Tuesday Oddo BHF announced that it has cut its target price on the Thomas Cook share to 115 pence (vs.
155 pence previously), following the group's FY profit warning.
Regarding Q4 to end-September, Thomas Cook yesterday published a trading update that highlighted pretty negative comments on the summer season. Management accuses particularly unfavourable weather conditions in Europe, which have limited demand at its tour operator division. The broker also mentions difficulties on the Spanish market, which is suffering from significant cost inflation. However, all of this information is not new, as the market has been talking about it for several months now, and as such, it does not come as a major surprise.
However, the wording is much more severe than on the publication of Q3 results in August, which calls into question the group's communication policy, Oddo BHF says.
In particular, the broker has reduced its adjusted 2018 Group EBITDA estimate from 339 million pounds to 284 million pounds.
Oddo is maintaining its buy rating on the stock, thinking that despite the difficult context in the short/medium term, the group's business model remains solid, while ongoing restructuring is relevant - this will enable the group to reconfigure its business model, the broker says.
Copyright (c) 2018 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.
155 pence previously), following the group's FY profit warning.
Regarding Q4 to end-September, Thomas Cook yesterday published a trading update that highlighted pretty negative comments on the summer season. Management accuses particularly unfavourable weather conditions in Europe, which have limited demand at its tour operator division. The broker also mentions difficulties on the Spanish market, which is suffering from significant cost inflation. However, all of this information is not new, as the market has been talking about it for several months now, and as such, it does not come as a major surprise.
However, the wording is much more severe than on the publication of Q3 results in August, which calls into question the group's communication policy, Oddo BHF says.
In particular, the broker has reduced its adjusted 2018 Group EBITDA estimate from 339 million pounds to 284 million pounds.
Oddo is maintaining its buy rating on the stock, thinking that despite the difficult context in the short/medium term, the group's business model remains solid, while ongoing restructuring is relevant - this will enable the group to reconfigure its business model, the broker says.
Copyright (c) 2018 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.