Thomas Cook: Berenberg upgrades to 'hold'

(CercleFinance.com) - This morning Berenberg upgraded its rating on Thomas Cook from "sell" to "hold," maintaining a target price of 12 pence for the stock.


"While we think the company is far from being out of the woods, the optionality of a sale of the airline and the potential support of Fosun for the tour operator means that the risk is fairly balanced with failure," the German broker said.

While Berenberg says it has seen a material weakening of the group's operational performance, the broker still sees some optionality surrounding the potential for an airline sale or a white knight saving the tour operator.

However, it still views the company's position as "precarious" and "at real risk of failing," it says.

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