RICHARD HUNTER | HARGREAVES LANSDOWN
While the news is disappointing and reflective of poor UK trading and prospects – quite apart from adverse currency movements having had an impact – there are positives, such as the dividend yield which is currently six per cent. Following these numbers, the current market consensus is that the shares are a ‘buy’.
SAM HART | CHARLES STANLEY
The shares look very cheap, but the trading update highlights the relatively low quality of earnings
in the tour-operator sub-sector. We think the shares will struggle to advance while earnings forecasts continue to be downgraded. Our recommendation remains ‘hold’.
NICK BATRAM | KCB PEEL HUNT
The market was clearly preparing for the worst following the update from TUI Travel. However, a five per cent downgrade represents a relatively robust and creditable performance. The performance could have been much worse given the challenging economic backdrop.