(News Bulletin 247) – Oddo BHF maintains its ‘outperformance’ rating on the TUI AG share, with a price target re-initiated at 8.8 euros, after the closing of the capital increase, of 1.8 billion euros, generating the issue of 328.9 million new shares at 5.55 E each.
The total number of outstanding shares reached 507.4 million. It is recalled that the shareholder Mordashov holding 31% of the capital before the operation could not participate in it, the rights relating to his shares having not been created.
“Now that the main grievance on the title has been lifted, focus on operations and the 2023 financial year will be a great year, in our opinion. All the signals on the evolution of leisure demand are positive’, underlines the broker.
According to the analyst, in 2023, the hotel business will again drive the group’s results and the cruise division will be a valuable catalyst (catch-up effect to play), which will also be the case, to a lesser extent, for the ‘destination’ business. services’.
‘All these factors mean that the current valuation of the stock, based on the 24th EV/EBIT and 24th PE ratios, at 4.3x and 4.6x respectively, comes out very low, both compared to the historical average and the average valuation of comparables’, concludes the research department.
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