TUI

TUI must contribute at least around €935m in the final quarter toward the adjusted EBIT target of €1.1–1.4bn, after only €165m were recorded after three quarters. The sharply higher oil price (Brent above $100) and the escalation of tensions in the Gulf increase cost pressure and jeopardize the forecast. TUI stock has moved inversely to the oil price in recent months; a sustained recovery appears to depend on a de-escalation in the Gulf and falling oil prices. A large part of the final quarter is already booked, so the target could still be achievable in theory. » Plus sur finanzen.net

TUI reiterates its annual forecast despite geopolitical headwinds and shows operational stability with improved booking momentum in recent weeks. Seven analysts give an average price target of €9.35 (around 39% above the current price); three recommend buy, four recommend hold. Headwinds remain rising net debt, a weaker airline business, and geopolitical and weather-related risks. Technically the stock is trading near its 12-month low; investors are watching the trading update on 22 September. » Plus sur finanzen.net

TUI is introducing a low-cost secondary brand called Sundeals in the UK, which—following the Ltur model—offers inexpensive basic trips with paid add-ons. The aim is to win back lost market share in the highly competitive British market and to appeal across Europe to customers with a holiday budget of up to 750 euros. Sundeals is intended to protect TUI’s core profile while opening growth in a segment where TUI has recently been underrepresented outside Germany. » Plus sur faz.net