TUI: setback potential

TUI sales fell by 10.1 percent in the second quarter to EUR 2.788 billion. EBIT deteriorated from -242 million euros to -681 million euros. TUI made a net loss of EUR 764 million (previous year: EUR -204 million). Independent Research analysts had expected EUR -248 million. This means that the expectations of the experts are sometimes clearly missed.

TUI is not making a new forecast. The consequences of the pandemic are huge, and not all effects are known yet. TUI received a bridging loan of 1.8 billion euros from the German government. Investments are also postponed to ensure liquidity. Administrative costs are to be reduced by 30 percent. That means 8,000 jobs will be cut.

Based on this information, the analysts expect a loss per share of 1.72 euros (old: +0.11 euros) for the current financial year. In the coming financial year, there will be a profit per paper of 0.08 euros (old: 0.42 euros).

The experts are raising the price target for TUI shares from EUR 3.10 to EUR 4.50. At the same time, they issue a sales recommendation for the title. So far, the vote was on “hold”.

After the recent price recovery, the experts see a potential for setbacks. This also occurs today. TUI shares fell 10.4 percent to EUR 5.208.

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