Proactive Investors - TUI AG (LON:TUIT) shares ascended 1.5% after Deutsche Bank (ETR:DBKGn) put the travel operator on its buy list.
The German investment bank upgraded its rating to 'buy' from 'hold' with an 843p per share price target.
Analyst Andre Juillard thinks the period of decline from the Covid crisis finally seems to be over, with the group witnessing a strong operating recovery throughout the past few months – which is expected to continue.
After a decent first half, Easter weekend was especially strong, with seemingly solid summer bookings, Juillard pointed out.
“Therefore, we expect TUI to beat its pre-Covid revenues in FY23e, supported by almost all business lines”, the analyst continued.
Considering the current trend in the sector in general, Deutsche has slightly increased operating expectations and come out 3- 4% higher than initial top-line expectations.
EBIT expectations for financial 2023 are more or less unchanged but up by 2-3% for the following two years.
Juillard said the new expectations are 2-4% higher than consensus, in general.