An update on the European travel sector from TUI AG (LSE:TUI) on Tuesday should confirm or not if August enjoyed a "positive, last-minute booking trend" and that September has also benefited from good booking trends, said Deutsche Bank.
A "solid" trading update is expected on 24 September, said analyst Andre Juillard, reiterating his €10.50 share price target versus a last close at €6.55.
It was only a just over a month ago that we last year from TUI, with its third-quarter results showing 9.5% revenue growth and +37% underlying EBIT growth.
At mid-August, bookings were up 6%, with prices up 3% and 88% of capacity sold.
"Recent feedback regarding operating trends for European tour operators seems to show that August registered a positive, last-minute booking trend, and September also seems to be benefitting from good booking," said Juillard, slightly tweaking up his expectations for the top-line and EBIT.
The current consensus expects topline growth of 10.5% and underlying EBIT growth of circa 31%.