MARKET TALK: Morgan Stanley Ups Thomas Cook To Equalweight

21st Jun 2010 07:56

0656 GMT [Dow Jones] Morgan Stanley upgrades Thomas Cook Group (TCG.LN) to equalweight from underweight but retains a 230p target. Whilst uncertainties over current trading against the backdrop of largely fixed summer capacity remain, the company can reach the brokerage's forecasts this year says Morgan Stanley. "while [volcanic] ash costs mean 3Q is unlikely to be that encouraging, cost savings are skewed to 2H and forex is more favorable, so the companies are confident they can make our FY forecasts," Morgan Stanley says. "With the shares on 8x P/E, a 5.5% dividend yield and below our price target, we cannot justify being underweight." Shares closed Friday at 201p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 21, 2010 02:56 ET (06:56 GMT)