TUI share price: ShoreCap upbeat on tour operator after results

Analysts retain ‘buy’ rating on group

TUI share price: ShoreCap upbeat on tour operator after results

Shore Capital remains bullish on TUI Group (LON:TUI), arguing that the company is continuing its push toward higher quality business which will help grow earnings over the coming years, Citywire reports. The upbeat comments followed the tour operator’s first-quarter results yesterday.

TUI’s share price, which rallied in the previous session, has retreated this morning, having given up 2.45 percent to 1,574.50p as of 10:27 GMT. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.64 percent higher at 7,213.92 points.

Shore Capital reaffirms TUI as a ‘buy’

Shore Capital reiterated its ‘buy’ rating on TUI yesterday, pointing to the group’s ‘robust’ results. The tour operator revealed yesterday that its losses had narrowed in the first quarter of its financial year and noted that current trading was progressing in line with expectations.

“TUI continues to make good progress in delivering on its strategy to recycle capital into high quality growth channels of cruise ships and hotels, with a further delivery for its TUI Cruise joint venture announced for 2023,” the broker’s analyst Greg Johnson commented, as quoted by Citywire, adding that the tour operator segment continued to “deliver a resilient performance with demand strong for most regions, albeit sterling-related cost pressures continue to impact the UK, where margins and profits are likely to be down year-on-year”.

Other analysts on tour operator

The 12 analysts offering 12-month price targets for TUI for the Financial Times have a median target of 1,600.00p on the shares, with a high estimate of 1,790.00p and a low estimate of 1,200.00p. As of February 13, the consensus forecast amongst 14 polled investment analysts covering the blue-chip tour operator has it that the company will outperform the market. 

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