Broker snap: Uncertainties still high on Thomas Cook, Credit Suisse says

28th Nov 2011 12:33

Analysts at Credit Suisse have given a guarded welcome to the new financing arrangement which Thomas Cook has put in place with its creditor banks. The Swiss bank considers that said arrangements are a "positive", but cautions that, "clarity on the group's financial outlook remains very uncertain," adding that there are still several sources of medium-term uncertainty.Against that backdrop, Credit Suisse states that it will be watching the company's 2011 fiscal year results, due out on the week of the 12th of December, for details on recent trading (with bookings reported to be down 30% since last week) and the company´s restructuring plans. Another medium-term source of uncertainty regarding which these analysts seek greater clarity are the group´s plans for asset sales. For all of the above reasons Credit Suisse concludes that, "the news regarding financing is clearly positive but the extent of the trading decline that led to the events of the last week remains unclear and as such the outlook for the equity value is somewhat uncertain. (...) In the meantime we expect the stock to remain volatile."Credit Suisse has an outperform rating on shares of Thomas Cook and a target price of 100p. AB