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Home / Special Reports / Thomas Cook shares down 18%; Now the time to buy?

This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.

19 May 2016

Thomas Cook shares down 18%; Now the time to buy?

*** Shares -18% this morning ***

  • Today's first half results included a full year profits warning
  • Management now expects profits at the lower end of market expectations
  • Less interest in travel to Turkey; Paris and Brussels terrorist events affecting bookings
  • The overnight disappearance of an EgyptAir plane is also impacting travel sector sentiment
  • Shares trading at 3yr lows, 4yr uptrend broken, but potential support at 70p
  • Will business improve over the rest of the year? Will the shares rebound or struggle?
  • Bloomberg Broker 12M consensus: 38% buy, 48% hold, 14% sell (breakdown on request)
  • CFDs tradeable with just a 10% margin

Technical Observations - For

  • Shares found support just above key 70p level
  • RSI close to 1yr lows, oversold; Momentum at 1yr lows
  • Gap down to be filled?

Thomas Cook Group PLC (-)

Technical Observations - Against

  • Break below major moving averages
  • Directional Indicators diverged bearishly
  • Too early for technicals to shows signs of a bounce

Broker Price Targets; 

Most Bullish 140p (+91%), Consensus 111p (+51%), Most Bearish 94p (+28%)

Thomas Cook Group operates within the tourism and travel industry. The Company owns, operates and manages travel agencies, tour operators and car hire agencies, as well as owning their own aircraft fleet, cruise ships and resort properties. ( )*

 *Source: Bloomberg.com

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