Thomas Cook: Oddo reduces price target
(CercleFinance.com) - Thomas Cook has announced that it is in advanced discussions with Fosun and its main banks.
Following this announcement, Oddo confirms its 'Reduce' rating with a target price down to 5p (compared to 18 p), given the lack of visibility on its future strategy in a very challenging context.
The recapitalisation announced (if approved by shareholders) will enable the group to avoid bankruptcy but does not resolve the issues linked to a fragile business model (heavy focus on the tour operator activity), says Oddo.
Oddo also reports that management has announced the conversion of a significant part of the debt into equity (meaning an additional dilution).
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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.
Following this announcement, Oddo confirms its 'Reduce' rating with a target price down to 5p (compared to 18 p), given the lack of visibility on its future strategy in a very challenging context.
The recapitalisation announced (if approved by shareholders) will enable the group to avoid bankruptcy but does not resolve the issues linked to a fragile business model (heavy focus on the tour operator activity), says Oddo.
Oddo also reports that management has announced the conversion of a significant part of the debt into equity (meaning an additional dilution).
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.