Investment bank Peel Hunt said Monday it has opted for a conservative rating on German company TUI AG ahead of the travel company's third-quarter results due on Aug. 9. TUI shares listed in London are down 26% so far this year. The results will cover the period to the end of June, but Peel Hunt believes the most significant information will be current trading data covering key late holiday market figures and further booking details for winter 2023-24.
“Recent trading data from airlines and other vacation companies suggests that demand for vacation travel is strong this summer,” Peel Hunt said. This could potentially lead to updates to TUI's forecasts for the full year 2023. Notably, the third quarter results will be the first time TUI has reported after restructuring its pandemic-era credit facilities.
In the last three months, TUI has outperformed competitors Jet2 and On the Beach, amid an improvement in demand for summer holidays. The upcoming results “should give us the opportunity to reassess whether our hold recommendation is too cautious,” said Peel Hunt analyst Ivor Jones.
