TUI AG: Berenberg maintains its 'buy' rating.

(CercleFinance.com) - Berenberg maintains its "buy" rating on TUI AG after the German travel company delivered a fourth-quarter underlying Ebita loss of 60.
3 million euros, versus its own forecast of a 61.2 million euro loss.

In a research note sent to clients, the broker says it is attracted to the group's increased diversification and the steps that TUI that has taken to drive growth elsewhere in the business.

Berenberg points out that growth is funded via asset disposals, which could break the two billion euro mark by the end of 2017.

The professional notes that the disposals will inflate capital expenditure, leaving the operational performance capable of underpinning an attractive 5% dividend yield.

Between the two large-cap tour operators - Thomas Cook and TUI - Berenberg still prefers the latter, for which it has a target price of 1,300 pence.

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