Market's view on TUI AG
Published on April 2024
- Stock watchers noted that TUI AG shares will be delisted from the London Stock Exchange and will consolidate trading primarily in Frankfurt, with a final trading date set for 21 June 2024.
- A significant decision factor for delisting from the London Stock Exchange is due to the decreased liquidity and the desire to centralise trading in Frankfurt, where a larger proportion of shares are already traded.
- Discussions include the options available to UK shareholders, such as transferring shares to accounts that can hold German shares, selling their shares before the delisting, or doing nothing and allowing TUI to handle the sale, where the net proceeds will be returned to them.
- Economic factors such as wet weather in Northern Europe positively affect last-minute travel bookings, benefiting companies like TUI during Easter and early spring.
- TUI reported better-than-expected financial results for FQ1 with significant improvements in EBIT and revenue, citing increased guest numbers and strong bookings as key performance drivers.
- The company maintains optimistic future revenue growth projections of at least 10% and an underlying EBIT increase of at least 25%.
- Booking trends in Germany show strong demand for travel in 2024 despite economic uncertainties, suggesting a robust outlook for TUI.