MARKET TALK: RBS Initiates Coverage Of Thomas Cook At Buy

14th Jul 2010 07:35

0635 GMT [Dow Jones] Royal Bank of Scotland initiates coverage of Thomas Cook Group (TCG.LN) at buy with 270p price target. Says the stock has underperformed significantly this year on concerns over summer trading and future growth prospects. Says: "We believe market concerns about the death of the package holiday are overdone." But the brokerage thinks the business has performed exceptionally well in very tricky markets and is well placed for the future. Says Thomas Cook is still reducing costs, in particular in airline and accommodation procurement, where it has restructured and increased its in-resort resources. Shares closed Tuesday at 198p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 14, 2010 02:35 ET (06:35 GMT)