Thomas Cook: Oddo BHF downgrades to 'reduce'
(CercleFinance.com) - Oddo BHF has downgraded its recommendation on the Thomas Cook share from "neutral" to "reduce" and has slashed its corresponding target price from 35 pence to 18 pence, with yesterday's publication inciting the broker to largely cut its 2019 earnings estimates for the tour operator.
The broker has more or less adopted management's expectations in terms of adjusted EBIT, and considers that it is currently risky to hope for a significant improvement in the group's operating performance.
In addition, Thomas Cook's financial situation, which is faced with a major resurgence of debt, raises the likelihood of it having to make a capital increase, which would obviously have a heavily dilutive effect for current shareholders, the analyst adds.
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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 more or less adopted management's expectations in terms of adjusted EBIT, and considers that it is currently risky to hope for a significant improvement in the group's operating performance.
In addition, Thomas Cook's financial situation, which is faced with a major resurgence of debt, raises the likelihood of it having to make a capital increase, which would obviously have a heavily dilutive effect for current shareholders, the analyst adds.
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.