TUI: shares fall after Berenberg downgrade
(CercleFinance.com) - TUI shares are down over 2% in late morning trading on Thursday after Berenberg downgraded the stock, citing strong headwinds and high capex.
The Hamburg-based bank has downgraded TUI from "buy" to "hold" and also cut its target price from 1,200 pence to 950 pence.
"We believe TUI is making a strategic error in pursuing further growth rather than focusing on its vertically integrated offering," Berenberg said, adding that the move is set to leave opex and capex at "inflated levels" on the medium term.
Despite its "neutral" rating on the shares, Berenberg said it would be selling into the shares' strength from here.
TUI shares were down 2.2% at 956 pence on the London Stock Exchange after these comments. The shares have now fallen 15% this year.
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.
The Hamburg-based bank has downgraded TUI from "buy" to "hold" and also cut its target price from 1,200 pence to 950 pence.
"We believe TUI is making a strategic error in pursuing further growth rather than focusing on its vertically integrated offering," Berenberg said, adding that the move is set to leave opex and capex at "inflated levels" on the medium term.
Despite its "neutral" rating on the shares, Berenberg said it would be selling into the shares' strength from here.
TUI shares were down 2.2% at 956 pence on the London Stock Exchange after these comments. The shares have now fallen 15% this year.
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.