TUI: BofA raises price target

(CercleFinance.com) - BofA Securities reaffirms its 'buy' recommendation on TUI with a price target raised from 10.
2 to 12.5 euros, pointing to 'resilient demand, light growth potential in assets and resolved balance sheet issues'.

The broker notes that the German tourism group has unveiled EBIT 2024 in line with consensus and a sales growth forecast above expectations, as well as an improvement in its debt ratio.

BoA has raised its EBIT 2025 forecast by 1% to €1,408 million, thanks to lower debt. TUI shares are trading on an EV/EBITDA 2024 ratio of 2.8 times according to our estimates, well below the 10-year average of five times," he continues.

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