UK share prices watch: TUI up on Tuesday
TUI Group (LON:TUI) has been one of today’s UK share prices to watch, advancing even as the tour operator reported lower profits amid the grounding of Boeing’s 737 MAX jets. Tomorrow meanwhile will bring the insurance sector in focus amid reports by Admiral (LON:ADM) and Prudential (LON:PRU).
TUI shares in demand on Tuesday
TUI is outperforming the market in today’s session even as it posted a 54.6-percent fall in EBITDA to €219.3 million for the third quarter of its financial year. The company, however, reaffirmed its guidance provided in March, and said that it had agreed a deal to sell two non-core German specialist businesses for an agreed enterprise value of between €96 million and €106 million.
“The desperate position of its rival Thomas Cook means investors will be breathing a big sigh of relief on the publication of travel outfit TUI’s third quarter results,” said AJ Bell investment director Russ Mould, as quoted by Reuters, adding that “the biggest takeaway is that full year guidance is being maintained”.
“Set against a raft of challenges, TUI is making valiant efforts to regain its previous growth,” Richard Hunter, the head of markets at interactive investor, added, as quoted by Proactive Investors. Shares in TUI are up by about 0.15 percent in early afternoon trade, having gained more than three percent earlier in the session, and outperforming the benchmark FTSE 100 index which has fallen into the red and is about 0.5 percent down. Shares in Thomas Cook Group (LON:TCG), whose recapitalisation plans rattled investors yesterday, has extended the previous session’s losses and is down by more than 11 percent.
Just Eat (LON:JE) has also been among today’s UK share prices to watch as Deutsche Bank lifted its price target on the stock from 690p to 750p. Proactive Investors quoted the broker as commenting that while the company’s merger deal with rival Takeaway.com was ‘appetising’ for the Dutch company, Just Eat-only shareholders (i.e. those without shares in Takeaway.com) would be much less satisfied as the implied offer price of 731p per share was ‘below market value’.
“For the short term we see high execution risk,” the analysts continued, adding that while Takeaway.com’s management had a strong track record of same-market consolidation, the merger with Just Eat would bring the company into ‘highly competitive regions’ where the British firm had historically underinvested in delivery services. Just Eat’s shares are changing hands about 0.7 percent higher.
In smaller UK shares, Aston Martin (LON:AML) is trading lower this Tuesday, having given up about 4.4 percent in early afternoon trade, pressured by a rating and share price downgrade at Credit Suisse. The Financial Times separately reported that hedge funds had taken record short positions in debt and equity against the company. According to the newspaper, shares in the luxury carmaker on loan now exceed eight percent, or the highest on record, compared with about five percent at the start of the year.
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UK share prices to watch tomorrow
Admiral Group is reporting its interims tomorrow, after reporting profit before tax of £479.3 million for the year ended December 31, up 18 percent year-on-year. IG recently named the blue-chip car insurer as one of the highest-yielding dividend stocks to watch in the UK, saying that shares in the company have been on a steady upward trajectory since its listing in 2004, and dividends have remained favourable, too. IG’s financial writer Anzél Killian further commented that the group’s reputation as a high-yielding dividend stock has been strengthened by its ability to grow despite Brexit-related concerns.
Prudential will also be among tomorrow’s UK share prices to watch, with the results to come as the company continues with the splitting of its business by spinning off its operations in Europe and in the UK into a separate company called M&G. Proactive Investors reports that analysts at UBS expect the Pru to post operating profit of £2.62bn for the first half, up nine percent on last year.
“This is driven by Asia £1.1bn (up 20% year-on-year , +4% vs cons), US £1.28bn (up 28% due to DAC benefit, +10% vs cons), UK £0.35bn (up 65% due to management actions, +11% vs cons), M&G £0.25bn (-8% y-o-y, in-line vs cons) and Eastspring £0.1bn (up 6% y-o-y, -4% vs cons),” the broker pointed out.
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