TUI: Oddo maintains buy rating
(CercleFinance.com) - On Tuesday Oddo maintains its buy rating on the share of German tour operator TUI, along with its target price of 12.
9 euros, with the group this morning unveiling quarterly results that are above expectations.
The world's number one travel group reported an underlying Ebita of about 101 million euros for its third quarter, significantly above the broker's forecast of 84 million euros.
In its note, Oddo points out that the group's tour operator business continued to suffer from uncertainty around Brexit and overcapacity in Spain.
However, the group's hotel and cruise business has, proved to be much more robust, the broker argues, in particular thanks to a highly dynamic business in Turkey.
While the share has fallen by more than 25% since the beginning of the year, Oddo highlights a valuation that has become "particularly low", with the share now trading at a 2020 P/E of 6.6x.
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.
9 euros, with the group this morning unveiling quarterly results that are above expectations.
The world's number one travel group reported an underlying Ebita of about 101 million euros for its third quarter, significantly above the broker's forecast of 84 million euros.
In its note, Oddo points out that the group's tour operator business continued to suffer from uncertainty around Brexit and overcapacity in Spain.
However, the group's hotel and cruise business has, proved to be much more robust, the broker argues, in particular thanks to a highly dynamic business in Turkey.
While the share has fallen by more than 25% since the beginning of the year, Oddo highlights a valuation that has become "particularly low", with the share now trading at a 2020 P/E of 6.6x.
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.