UBS cuts Avolta to 'neutral' on Middle East risks for travel industry

WH Smith

28/04/2026 09:56

** UBS cuts Swiss duty-free retailer Avolta AVOL.S to "neutral" from "buy", citing higher earnings risks for the travel industry due to the Middle East conflict

** "The risks of lower consumer confidence, rising airline ticket prices triggering consumer price elasticity and reduced airline capacities could impact Avolta's growth," UBS says

** The travel industry outlook is increasingly muted in near term, the brokerage says

** The broker says there is a 5-10% downside risk to consensus, some of which might already be reflected in the share price

** UBS points to most recent profit warnings from travel retailer WH Smith SMWH.L and tour operator Tui TUI1n.DE

** Shares fall over 5%, on track for worst day in over a month

 (Reporting by Amir Orusov)

 ((Amir.orusov@thomsonreuters.com))