TUI AG (LSE:TUI)‘s target price has been slashed by Deutsche Bank following its last cash-raising exercise.
The travel operator and airline raised EUR1.1bn in October to follow earlier funding of EUR523mln.
The rights will mean an additional 523mln new shares being issued said Deutsche (10 for 21).
The new target is 245p, against 335p previously to reflect the dilution, with the investment rating ‘hold’ as the broker believes that with the additional cash TUI should be able to navigate any short-term travel uncertainty ‘without much issue’.
Net debt / EBITDA is at a manageable 2.5 times in the current year, dropping to 1.4x by2023, added the broker.
Shares fell 1.8% to 221.9p.
