On The Beach PLC (LON:OTB) shares jumped on Thursday as City broker Numis upgraded holiday group to ‘buy’ from ‘add’ and left its price target unchanged at 663p.
In a note to clients, analysts at Numis said although On The Beach shares have fallen by 25% since its interim results in May, they view this as an overreaction to the marginal earnings downgrade.
The analysts said: “This may be due to largely unfounded concern over an increasingly competitive environment.”
“With no changes to our fundamental view nor estimates and with now 37% upside to our unchanged price target, we upgrade to buy,” the analysts concluded.
In morning trading, On The Beach shares jumped 7.6% to 520.0p.