TUI offers a 23% chance for growth.

TUI offers a 23% chance for growth.

TUI's share price bounced back after FTI Touristik declared bankruptcy. If investors have a bonus certificate with Cap, they can still make a profit even if the TUI share experiences further pressure.

TUI's share price shot up from a 12-month low of 4.37 euros on October 24, 2023 to a yearly high of 8.01 euros on April 9, 2024, only to dip to 6.40 euros before bouncing back up to 6.96 euros after the FTI Touristik bankruptcy.

UBS experts believe the FTI Touristik bankruptcy could enhance TUI's profitability and cash flow, prompting them to reaffirm their "Buy" recommendation for the stock.

Alternative investment

For those daring enough to invest in TUI's shaky stock, they could consider a bonus certificate with Cap instead. Unlike direct stock investment, bonus certificates with Cap offer investors the chance to earn substantial returns even if the stock experiences a significant price decline.

Bonus certificates with Cap let investors make money through both price increases and price declines. In contrast, direct stock investment relies solely on stock price increases.

Mechanism

If TUI's stock doesn't touch or fall below the 4.60-euro barrier before the certificate's expiry date, investors will receive one share for each certificate.

Here are the specifics:

• The HSBC bonus certificate with Cap for TUI stock (ISIN: DE000HS4UGQ3) has a bonus level of 9.00 euros and a Cap of 9.00 euros.
• The current barrier is set at 4.60 euros and expires on September 19, 2025.
• The certificate is available for purchase at 7.32 euros.

Prospects

If TUI's stock stays above 4.60 euros or falls below the Cap of 9.00 euros by the valuation date, the certificate will be redeemed at the TUI stock price on the valuation date. If the redemption price is higher than the purchase price, the investor makes a profit.

Risks

If TUI's stock touches or falls below the 4.60-euro barrier by the valuation date and trades below the Cap of 9.00 euros on the valuation date, the certificate will be redeemed with the stock price on the valuation date. If the redemption price is below 7.32 euros, the investment results in a loss.

This article doesn't advise buying or selling TUI stocks or any products connected to TUI stocks. No liability is assumed for the accuracy of the information provided.

Read also:

1. Many consumers seeking financial investment opportunities might consider purchasing a bonus certificate for TUI's stocks as an alternative, especially given the uncertainties in the market.
2. The financial advisor suggested that securities like TUI stocks, coupled with bonus certificates, could diversify the investor's assets and reduce potential losses.
3. Recent market trends indicate that DAX-listed companies like TUI, despite their challenges, can provide significant returns via stock tips and bonus certificates, when properly managed.
4. TUI's stock tip for those interested in financial investment suggests considering alternative strategies, such as investing in bonus certificates, to capitalize on the potential growth of the company despite market fluctuations.

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