TUI reports strong figures as it debates London exit
TUI has reported further good numbers thanks to strong demand, but it continues to consider an exit from its London listing.
TUI reports strong figures as it debates London exit
German travel giant TUI AG has reported a quarterly profit of 6 million euros ($6.46 million), surpassing expectations due to strong travel demand. The company's profit turnaround was significantly higher than the forecasted loss of 102 million euros.
TUI's revenue for the first quarter reached a record 4.3 billion euros, a 15% increase from the previous year, driven by higher demand and increased prices.
TUI CEO Sebastian Ebel expressed confidence in the company's growth and transformation, stating that they are on track and gaining customers. TUI expects to achieve at least 25% growth in operating profit for the 2024 financial year and aims for a compound annual growth rate of 7-10% in the medium term.
Despite the positive results, TUI's share price is still trading at a significant discount compared to historical averages, according to Deutsche Bank analysts.
Analyst ratings for TUI
Refinitiv data shows a consensus analyst rating of ‘buy’ for TUI with 1 strong buy, 5 buy and 5 hold – and a mean of estimates suggesting a long-term price target of €9.63 for the share, roughly 48% higher than the current price (as of 13 February 2024).
Technical analysis of the TUI share price
TUI’s share price, which recovered from its October 2023 record low at €4.366, to its December peak at €7.344 before sliding back to its mid-January low at €5.970, only very briefly shot back up close to its August 2023 peak at €7.410 before being rejected by it post its Q1 earnings on Tuesday morning.
TUI Weekly Candlestick Chart
On the daily chart the rejection can be seen even better with a possible Bearish Engulfing pattern being formed on Tuesday. This bearish chart pattern would be validated by a daily chart close below Monday’s €6.510 low and another down day on Wednesday.
TUI Daily Candlestick Chart
The 200-day simple moving average (SMA), mid-January and early February lows at €6.118 to €5.970, together with the November high at €5.950, should offer good support.
In case of it giving way, a slide to the September 2023 high at €5.876 may even be envisaged.
For a long-term inverse head and shoulders technical bullish reversal to become probable a rise and daily chart close above the July, August, December and current February high at €7.344 to €7.410 would need to be seen.
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