Barclays Capital has upgraded its investment rating on travel group Thomas Cook (LON:TCG) to 'overweight' (from 'equal weight'), which it says is given the supportive valuation, resilient margins and scope to materially increase dividends.
The bank added: "No EPS downgrades, the re-introduction of the dividend and proactive actions to improve Condor profits suggests TCG may have reached an inflection point.
"We have been cautious on TCG for 2.5 years but margins and cash have improved (FY16 results reassuring), and valuation is attractive."
Barclays has increased its target to 90 pence per share from 75 pence.
At 2:24pm: (LON:TCG) Thomas Cook Group PLC share price was +2.25p at 81.25p