TOURISM HOLDINGS LIMITED (THL)
Share Price Analysis and Chart

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02/09/2024

3

Hold

$2.02

24.69%

Tourism Holdings Rentals' FY24 result was weak but in line with Morgans' expectations. The difficult June Q trading conditions are likely to continue into FY25 and lead to a weak 1H25 result, but management expects earnings growth in the full year.

Morgans acknowledges that Tourism Holdings offers material leverage to an improved economic cycle, but given earnings uncertainty remains, it is a capital-intensive business which is debt funded and lacking share price catalysts, the broker maintains a Hold rating.

Target rises to $2.02 from $1.94.

FORECAST
Morgans forecasts a full year FY25 dividend of 9.13 cents and EPS of 23.73 cents.
Morgans forecasts a full year FY26 dividend of 12.78 cents and EPS of 32.85 cents.

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02/09/2024

3

Downgrade to Market Weight from Overweight

$1.90

17.28%

With revised guidance the -33% fall in FY24 net profit for Tourism Holdings Rentals was broadly in line with Wilsons' expectations.

NZ reported a record EBIT result which was offset by weakness in other parts of the business, including a writedown of goodwill for the UK.

The RV sector remains challenged the broker highlights. When combined with lower capex, slower fleet growth is likely.

Wilsons lowers earnings forecasts by -5% to -10% for FY25 to FY27.

Downgrade to Market Weight from Overweight. Target price falls -10% to $1.90.

FORECAST
Wilsons forecasts a full year FY25 dividend of 8.94 cents and EPS of 22.91 cents.
Wilsons forecasts a full year FY26 dividend of 11.77 cents and EPS of 28.93 cents.