Tui's update trading statement today was good news for the UK's other airlines according to Panmure Liberum. Though now listed in Frankfurt, UK-focused subsidiary Thomson Holidays is still a major part of the TUI business and overall there was some positive read-through from the numbers, said the broker.
An update on the European travel sector from TUI AG (LSE:TUI) on Tuesday should confirm or not if August enjoyed a "positive, last-minute booking trend" and that September has also benefited from good booking trends, said Deutsche Bank. A "solid" trading update is expected on 24 September, said analyst Andre Juillard, reiterating his €10.50 share price target versus a last close at €6.55.
TUI AG's 3Q24 results show record performance, with 8 consecutive quarters of double-digit EBIT growth and strong demand trends across all business lines. The company's strategic transformation aims for significant EBIT growth while maintaining leverage below 1x, with a focus on becoming a "platform" business. Despite short-term underperformance, TUI's valuation remains appealing, with a potential upside of over 100% if the €14/share price target is met.
TUI AG (LSE:TUI) saw profits jump by more than a third in its latest quarter as it cashed in on the recent collapse of German rival FTI. Underlying earnings jumped 37% to €232 million (€169 million) in the quarter to end June, well ahead of forecasts beforehand of €217 million.
TUI AG has delivered record-level revenues in 2Q24, with improved profitability and booking upside. The company's financial improvements include a reduction in net debt and an upgrade by S&P Global. TUI's valuation suggests potential upside, although it remains a speculative investment with risks related to macro events.