Stock price surge: did TUI experienced a 45% increase prior to the expected price rise?
In the latest issue of BÖRSE ONLINE, TUI's stock is making waves with a positive forecast for the next three months. The current trend indicates a potential upside of around 10.36%, with the predicted price range between 7.16€ and 9.08€ by the end of this period.
This bullish price outlook follows TUI's recent update, where the company raised its fiscal year 2025 underlying EBIT guidance to a growth range of +9-11% (previously +7-10%). This reflects a stronger-than-expected performance in the first nine months and positive early July indications. TUI also expects revenue to increase at the lower end (+5%) of its prior 5-10% range for FY 2025.
This upgraded guidance has been met with positive reception from analysts, with some reiterating positive recommendations based on the improved earnings per share (EPS) forecasts for FY 2025 and 2026.
TUI's own hotels and resorts are also experiencing growth, with an increase in the number of beds, occupancy, and average price. This growth particularly boosts profits.
The cruise business of TUI is also robust, with "Mein Schiff 7" boasting over 100% bookings and a slight increase in daily rates.
In addition, demand and possible price increases are optimizing TUI's capacity. Winter bookings for TUI have increased by 10%, and across the entire group, winter bookings have risen by 7%.
The trend of increased earnings and profits in TUI's business sectors appears to be continuing. The group's forecast for the coming year aims to increase the operating profit by an average of 7 to 10%.
Lower financing costs are a result of TUI's debt reduction, and high cash flow allows the company to continue reducing its debt. The insolvency of competitor FTI has also benefited TUI's business areas.
As TUI's stock price starts to reflect the expected growth, some analysts have set a target price for TUI's stock at ten euros, suggesting a potential upside of 45%.
However, it's important to note that the stock may encounter some short-term technical resistance and volume fluctuations, so careful monitoring is warranted.
In conclusion, TUI's revised optimistic earnings forecast, combined with its current upward stock price momentum, suggests a solid potential upside in the near term for this tourism conglomerate.
Investors are showing interest in TUI's stock, given the optimistic forecast for its financial performance in the next three months, with a predicted upside of around 10.36%. The current trend in the stock-market also reflects the improved earnings per share (EPS) forecasts for FY 2025 and 2026, making investing in TUI an appealing choice for some Analysts.
