TUI: Credit Suisse raises target price.
(CercleFinance.com) - Credit Suisse maintains "underperform" rating on European tour operator TUI, while inching up its target price on the share to 1,100 pence from 1,040 pence, after the transfer of Blue Diamond and Thomson Cruises to the hotel and cruise segments respectively.
The brokerage firm - which says it is applying higher multiples to those businesses - still retains a cautious view on the stock given the group's poor cash flow, plus risks of low-cost carrier growth in Germany.
Credit Suisse - for which UK trading (the leading profit generator) remains one of the main focuses - nevertheless acknowledges that trends in hotels & cruise "continue to impress."
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