Thomas Cook shares sink 2:46 pm by Giles Gwinnett James Hollins, analyst, noted that the firm's shares had risen by 115 per cent since then but now offered only a 10 per cent upside to Investec's unchanged price target of 30 pence Shares in tour operator Thomas Cook (LON:TCG) sank more than 15 per cent today as broker Investec downgraded its rating on the stock to 'hold' from 'buy'. It comes after the broker initiated coverage of the stock on February 21 with a 'buy' rating. James Hollins, analyst, noted that the firm's shares had risen by 115 per cent since then but now offered only a 10 per cent upside to Investec's unchanged price target of 30 pence. "We therefore move from 'buy' to 'hold'," he said. Last month, the group posted higher losses in its latest quarter though it said summer trading looked more encouraging. Operating losses at the Airtours owner rose to £91 million from £37 million due to problems in the UK and higher fuel costs. Pre-tax losses rose to £151.7 million from £99.3 million. The company said the winter season remained subdued with economic concerns weighing on consumers' minds and added that summer season bookings were ahead of capacity in the UK and Central Europe despite the difficult market backdrop, but were slower than expected in Northern Europe and West and East Europe. Hollins said the group's positive stance at initiation had been based on the prediction that the firm would survive in its current form, with additional factors such as a supportive banking syndicate. Today, the analyst said the group's survival was likely but added: "Thomas Cook's banks may be supportive in the near term, but there is scope for the syndicate to demand a reduction in the group's gross debt." The most likely outcome in this situation would be an equity raise, which would risk shareholder dilution, pointed out the analyst. As at 2.45pm, shares in the firm stood down 15.93 per cent, at 23.75 pence.
also setzen die das dann morgen wieder auf buy oder was? :D |