Stifel resumes coverage of Tui at 'buy', says shares oversold

Stifel said the strong market reaction to the company's aborted profit guidance has left the shares looking oversold, with free cash flow inflection underpinning a 9% dividend yield and sum-of-the-parts valuation support.

"Near term focus will be on the second-half profit recovery, which still carries risks, reflecting a challenging backdrop for the industry," it said.

"Tui's vertically integrated business model leaves it well placed to adapt to industry change and possible consolidation, as peak capex gives way to a third wave of tech-led initiatives."

At 1215 BST, the shares were up 3.6% at 833.20p.