Published on Tuesday, February 11, 2020

What the analysts say...

Nigel Frith, senior market analyst at Ask Traders, on the latest Flybe and HS2 developments:

"The approval of HS2, talk of a bridge connecting Northern Ireland to Scotland and now the government considering an ownership stake in Flybe. Boris Johnson is making it very clear that he is prepared to push boundaries to improve regional connectivity across Britain. The question is a what cost?

The latest developments in the government - Flybe saga suggest that Boris isn't willing to let anything get in the way of attempts to level up the UK. Even if this means supporting a weak business model in a company which could find support from its wealthy owners, who include Virgin Atlantic, Cyrus Capital and Stobart haulage."

Keith Bowman from Interactive Investor on TUI's first quarter update:

"With so many factors outside of management's control potentially influencing performance such as terrorism, fuel prices, currency movements, the holiday business is often a volatile and high-risk industry in which to invest.

For TUI itself, the demise of rival Thomas Cook has reduced industry capacity, allowing TUI to sweep up many of Cook's customers and help fuel current strong bookings. A rebasing of the dividend, although not a surprise, was a disappointment, even if arguably sensible given the Boeing related uncertainties and increased financial flexibility.

For investors, consumer confidence remains key. Brexit trade negotiations and recessionary German economic conditions offer a tough backdrop. Following 2019's dividend reduction, a one-year estimated yield of just over 3% still offers some attraction, while a forward price/earnings (PE) ratio below the three-year average suggests a valuation which is not excessive."



Story Image

Your Comments

, be the first to post a comment.
Your email:

Email other comments made to this story

NOTE: Comments are subject to admin approval before being posted.
Mole Poll
Has the announcement of a UK quarantine further hit bookings?
YES 57.77 %
NO 42.23 %

Thank you for your vote

What is GoodtoGo?

Submit your news
or special offer

Current UK Special Edition

Current US Special Edition

Current Asia/Pacific Special Edition


Malta prepares to open up to the world

Iceland plans to launch new UK trade initiative

Mario Hardy, CEO PATA - Who dares, wins: Who will hit the reset button?

The Florida Keys is open for business ! Find out the details here