JPM starts TUI with 'overweight' as negative trends reverse

Accor SA

19/03/2025 09:06

** J.P.Morgan initiates TUI TUI1n.DE with "overweight" rating seeing negative trends such as macro concerns around core markets UK/Germany reversing and improving margins

** Shares in the tour operator rise around 4% at 0900 GMT and are amongst the best performers on the pan-European STOXX 600 .STOXX index

** "We now view the risk-reward as appealing" - JPM

** Within its hotels and leisure coverage, the brokerage's favourite stocks are TUI and also "overweight"-rated Accor ACCP.PA

** JPM sees a re-rating potential for TUI based on a clear path for margin improvement as the firm focuses on a more asset-light business model, with ongoing scale and cost initiatives continuing to crystallise

** It also sees ongoing balance sheets improvement and it forecasts a dividend starting in FY 2026, while LSEG consensus expects a 0.43 euros ($0.4690) only in FY 2027

($1 = 0.9168 euros)

 (Reporting by Paolo Laudani)

 ((Paolo.laudani@thomsonreuters.com))