After the holidays in the U.K., the European travel stocks rose on Tuesday as Spain decided to welcome foreign tourists. The multinational travel and tourism company, TUI Group, was also among the best performers with shares surging 35%.
The investors were motivated by TUI’s update on resuming flights at the end of June. As the devastating coronavirus pandemic put all travel business on hold, European governments are putting efforts to save their economies by reviving global traveling in the summer.
As more businesses in Europe have received permission to resume their activities, many investors are hopeful for a strong travel season. As air travel is planned to relaunch soon, many believe that the economies of European countries can recover from the several weeks of shutdown.
The first steps towards the restart of the traveling season can be seen in Greece as the country resumed its ferries to different islands. In addition to that, cafes and restaurants in Greece are reopening, allowing the country to start its economic recovery.
Other European countries are also putting efforts into reopening businesses. Airlines like Jet2, EasyJet, Ryanair and British Airways are also resuming their flights soon. This motivated the travel company TUI to restart its services, with trips planned to resume on June 12. The destinations to which traveling will be possible include Albania, Bulgaria, Czech Republic, Germany and Iceland. The company guarantees that customers have nothing to worry about. They can book their holidays in advance and rest assured that they will receive refunds in cases of trips being canceled.
Analyst stock price forecast and recommendation
According to Investing.com, the 14 analysts who are offering a 12-month stock price forecast for the Tui AG NA stock have an average target of 5.190, with a low estimate of 1.700 and a high estimate of 13.000.
The same media also offers the recommendations of the investment analysts on the Tui AG NA stock. Out of all 14 surveyed analysts, 2 rated the company’s stock as “Buy”, 5 ranked it as “Sell” and 7 are neutral.