First Choice Holidays "buy," target price raised

12/08/05 - Panmure Gordon & Co

LONDON, December 8 (newratings.com) - Analyst Douglas Jack of Panmure Gordon & Co maintains his "buy" rating on First Choice Holidays Plc (FCD-GBX), while raising his estimates for the company. The target price has been raised from 240p to 250p.

In a research note published this morning, the analyst mentions that the company has posted its 2005 PBTA and EPS ahead of the estimates. The EPS estimate for 2006 has been raised from 16.4p to 16.7p to partly reflect the recent results and the earnings accretive acquisition of Grand Expeditions. First Choice Holidays is on-track to achieving the operating margin target of 5% by 2007, the analyst adds.