One to Watch

TUI Travel217.7p +2.4pScotsman says BUY

WHILE a large part of TUI Travel's business is focused on the sale of flights, accommodation, car hire and excursions, it also operates a variety of more specialist businesses that focus on premium travel experiences and tailored holidays.

The strife that airlines and holiday operators have been suffering over the past couple of years has been well documented, and the disruption caused by the Icelandic ash clouds only served to augment these difficulties.

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On a more positive note, bookings for summer 2010 have continued to come in at higher average selling prices and a recent update from TUI suggests that demand is starting to pick up. Since the merger that created the business in 2007, TUI has progressed well with the integration of First Choice and Germany's TUI and has continued to meet its cost-savings targets, double the initial forecast at the time of the merger. A reduction in competitors, as well as this much reduced cost base, may benefit the company and cash generation is expected to become more significant.

• The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.


1,435p +28p

Broker says HOLD

CITI has maintained its "hold" recommendation on Aggreko but increased its target price on the Glasgow-based temporary power unit supplier from 1,200p to 1,450p. The broker said: "The business is performing very well and we are today upgrading our above-consensus earnings-per-share forecasts. Most of this is due to better underlying trading."


854p +15.5p

Broker says HOLD

CANACCORD has lowered its rating on Antofagasta from "buy" to "hold" and cut its target price from 1,252p to 875p. The broker said: "However, we remain positive on Antofagasta's longer-term potential. We believe the company will be able to use its sizable cash balance to grow production."