TUI Group is a leading tourism group headquartered in Germany. Founded in 1923, the company hasd until very recently its primary listing in the premium segment of the London Stock Exchange under the ticker TUI.
The stock was included in the FTSE 250 index however, its delisting from the London Stock Exchange took place in June 2024 after shareholders voted in favour of listing its shares solely in Germany on the Hanover and Frankfurt exchanges.
The company now has primary listings on the Frankfurt and Hanover Stock Exchanges and is admitted to the electronic trading system Xetra. The ticker symbol will now read ETR: TUI1, or TUI1.DE / TUI1.XE on some trading platforms.
TUI has extensive experience in the travel industry and offers a wide range of holiday and travel services, including package holidays, flights, hotels, cruises, and tours. Sebastian Ebel is the company’s current CEO after taking up the role in October 2022.
TUI Frankfurt Price
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TUI Share Price & Dividend Yield
The TUI share price struggled, as expected, significantly through the COVID-19 pandemic and has yet to see any real recovery since then, although it is up over the last 12 months (+9% as of May 6, 2024). Investors will be hoping the movement of its primary listing will give the stock a boost.
Pre-Covid, TUI paid dividends. However, in connection with the pandemic, it agreed on three stabilisation packages with the German government, with the conditions including a “de facto dividend holiday, which will remain in force over the term of the loans and the duration of the investment made by the Economic Stabilisation Fund.”
TUI EPS and Revenue Breakdown 2020-2023
| TUI | Annual EPS | Annual Revenue |
|---|---|---|
| 2020 | -€5.45 | EUR 7.94 billion |
| 2021 | -€2.28 | EUR 4.73 billion |
| 2022 | -€0.45 | EUR 16.54 billion |
| 2023 | €0.74 | EUR 20.67 billion |
Airline Industry Comparison
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TUI Share Price Forecast
Overall, five analysts currently have a Buy rating on TUI shares, with four giving the stock a Hold rating. One analyst has assigned TUI a Sell rating, according to data compiled by TradingView. The average 12-month price target for its London-listed shares is 711.5p.
In March, Morgan Stanley upgraded TUI to Overweight from Equal Weight, with a price target of EUR 10, up from EUR 9. Analysts at the bank said they see a “very low” valuation at current levels and room for operating improvement.
Jefferies recently lifted its target for TUI shares to EUR 7.50 from EUR 7, keeping a Hold rating on the stock. Jefferies noted that the European travel market remains incredibly strong. They believe TUI is benefiting from the consumer shift to experiences. The firm added that it is staying on the sidelines despite the attractive valuation.
Our View: While the TUI share price may look attractive at current levels, the company does seem to be behind others in its recovery from the pandemic period. For a certain type of investor focusing on value, it may be worth a further look. However, there are concerns over its balance sheet, which should be assessed further.
Who Should Buy TUI Shares
TUI presents an enticing opportunity for investors seeking exposure to the travel sector. However, it may not be suitable for every investor’s portfolio. Here’s why:
Given the current headwinds TUI faces, investing in it necessitates a careful assessment of risk tolerance. Potential investors should have a moderate to high risk tolerance. In addition, they should consider that TUI’s operations are susceptible to various factors, such as economic downturns, geopolitical events, and shifts in consumer behavior.
While TUI has historically paid dividends to shareholders, it is currently on a de facto dividend holiday, so income-focused investors may not be best suited to the stock at this time.
Despite short-term setbacks, some see TUI as having long-term growth potential, so investors with a long-term time horizon may find the stock attractive as a buy-and-hold.
Considering TUI’s market positioning, value investors may perceive its current price as attractive. However, it is important to first assess the current headwinds impacting the stock before jumping in.
Bon Voyage To TUI’s London Listing
In the interests of completeness, you can see from the chart as TUI disappears from the London Stock Exchange. As LON: TUI becomes a thing of the past, it is worth bearing in mind that the primary listing exchange of a stock does not change the fundamentals of the business. There can be greater capital inflows into various indices that a stock may appear on, but the business remains consistent, apart from potentially having to please a different set of primary sharheolders.
Those interested in TUI shares can still buy from the Frankfurt Stock Exchange, and most trading platforms will support that without you knowing much of a different (apart from the ticker).
