TUI: Berenberg downgrades to 'sell'

(CercleFinance.com) - Berenberg has downgraded its rating on the TUI stock to "sell," saying that the German tourism company may face "tough times" this summer.


"TUI's shares have rallied strongly following the easing of travel restrictions, although we fear the journey back to financial strength will be long," Berenberg analysts said in a research note.

"We expect it will need to raise equity to lower its debt levels even in the event that the Hapag-Lloyd deal closes, which leaves the shares unattractive," they added.

Berenberg also cut its target price from 950 pence to 350 pence.

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