Equities By Region Transport and Tourism UK

TUI share price: Analysts see fall in stock as good entry point

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The Share Centre argues that the recent fall in TUI’s (LON:TUI) shares  has provided an entry point for the travel group given the long-term potential, Citywire has said. The news comes after the company recently posted a rise in turnover for the third quarter of its financial year, while revealing that the air traffic control strikes had impacted its results.

TUI’s share price fell in the previous session, giving up 1.51 percent to close at 1,400.50p, underperforming the broader UK market, with the benchmark FTSE 100 index adding 72.18 points to close 0.98 percent higher at 7,504.60, benefitting from a weaker pound. The group’s shares have added just under five percent to their value over the past year, as compared with less than a one-percent gain in the Footsie.

The Share Centre upbeat on TUI

Citywire quoted The Share Centre’s analyst Ian Forrest as commenting yesterday that TUI’s shares were a ‘buy’ for “medium risk investors seeking a mixture of growth and income due to the long-term growth potential, the healthy dividend and reducing competition in the sector”.

“Despite taking a hit due to a trio of unexpected events – the summer heatwave in northern Europe, air traffic control strikes, and the devalued Turkish currency – the group reiterated its full-year guidance,” the analyst pointed out, adding that the FTSE 100 group had “stated that it remained on track to post double-digit earnings growth for 2018”.

Other analysts on tour operator

Shore Capital reaffirmed TUI Group as a ‘buy’ last month, without specifying a price target on the shares. According to MarketBeat, the blue-chip tour operator currently has a consensus ‘buy’ rating and an average price target of 1,714.17p.

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