Thomas Cook: UBS upgrades to 'neutral' after warning
(CercleFinance.com) - UBS has upgraded its rating on the Thomas Cook stock from "sell" to "neutral," after the British tour operator's warning on Monday that "weak trading" would hurt its full-year profit.
"Although uncertainty remains, we believe the current valuation better reflects the outlook," the broker wrote in a note to clients.
The shares have fallen by almost 25% this week, meaning that they have now lost over 50% of their value since the beginning of 2018.
In its note - entitled "Reset expectations" - UBS said that it has cut its target price for the stock from 85 pence to 60 pence, and has lowered its earnings estimates for 2019 and 2020 by 15%-25%.
The share is currently down 0.1% at 60.2 pence.
Copyright (c) 2018 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.
"Although uncertainty remains, we believe the current valuation better reflects the outlook," the broker wrote in a note to clients.
The shares have fallen by almost 25% this week, meaning that they have now lost over 50% of their value since the beginning of 2018.
In its note - entitled "Reset expectations" - UBS said that it has cut its target price for the stock from 85 pence to 60 pence, and has lowered its earnings estimates for 2019 and 2020 by 15%-25%.
The share is currently down 0.1% at 60.2 pence.
Copyright (c) 2018 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.