Update shared on 01 Dec 2025
The analyst price target for TUI has increased from EUR 10.00 to EUR 11.00. Analysts cite improved long-term growth prospects and enhanced profitability expectations as key factors supporting the higher valuation.
Analyst Commentary
Analyst opinions on TUI remain divided, with both bullish and bearish perspectives represented in recent reports. The following summarizes the key takeaways shaping sentiment on the stock:
Bullish Takeaways- Bullish analysts have raised price targets, citing improved profitability expectations and stronger long-term growth prospects.
- Recent upgrades reflect confidence in TUI's ability to execute on its strategy and deliver enhanced operational performance.
- A pattern of price target increases suggests that market expectations for TUI’s earnings potential are trending higher.
- Ongoing positive revisions indicate that improved fundamentals are being recognized and factored into valuations.
- Bears remain cautious and often maintain Neutral ratings despite increased price targets, which signals concerns over the execution risks still facing TUI.
- Some analysts continue to emphasize potential headwinds in the competitive landscape and macroeconomic challenges that could pressure margins.
- Skeptics highlight the need for TUI to consistently deliver on growth initiatives and warn that underperformance may limit further upside in the stock’s valuation.
What's in the News
- TUI AG reaffirmed earnings guidance for Fiscal Year 2025, maintaining expectations for revenue growth at the lower end of 5-10% compared to FY24 (€23,167 million).
- The company raised its underlying EBIT growth outlook to 9-11%, up from previous guidance of 7-10%. This change is attributed to stronger profit expectations (Key Developments).
Valuation Changes
- Fair Value has remained stable at €11.10, showing no significant change in the latest update.
- Discount Rate has fallen slightly from 8.61% to 8.47%, reflecting marginally improved perceived risk.
- Revenue Growth expectations have decreased slightly, moving from 2.35% to 2.34%.
- Net Profit Margin has risen slightly, up from 3.30% to 3.31%.
- Future P/E ratio has decreased marginally from 8.76x to 8.69x, which suggests a modest improvement in future earnings outlook.
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