TUI: shares remain undervalued, Berenberg says
(CercleFinance.com) - Berenberg said that it is still convinced that TUI shares remain undervalued, despite their recent rally, having dramatically fallen earlier this year following a profit warning and the grounding of the 737 MAX.
In a note to clients, the German broker said it continues to like the European tourism group's equity story and its well-diversified business model.
"The recent rally reflects promising third-quarter results in August which have increased investors' confidence in the company being able to meet its full-year expectations," it pointed out.
While TUI may have gone through a disruptive year, the fundamentals remain strong, and the broker maintained its "buy" rating, with a target price of 1,200 pence.
TUI shares are currently down 2.4% at 861.2 pence. They have fallen by 23% year-to-date.
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.