Numis downgrades Thomas Cook to 'hold'

11th Feb 2014 10:26

Numis Securities downgraded Thomas Cook after the tour operator cut first-quarter losses but took a revenue hit from fewer people visiting Egypt.Numis reduced its recommendation on Cook to 'hold' from 'add' after the holiday company reduced losses by £10m to £56m but said revenue fell by 0.9% as winter sun-seekers stayed away from Egyptian resorts due to political unrest.The broker described the trading update as unexciting but acknowledged the group's longer-term potential as Chief Executive Harriet Green pushes ahead with her programme of cost cuts, disposals and launching more exclusive holidays tailored to customer demand."We believe there is little in the first-quarter announcement to excite the market in the short-term and expect some consolidation in the share price," Numis said in a note.Shares in Thomas Cook fell 1.5% to 182.7p by 10:39 in London.PW