Thomas Cook, Tui Travel cut at Morgan Stanley

LONDON (MarketWatch) — Tui Travel was downgraded to equalweight from overweight at Morgan Stanley while Thomas Cook was downgraded to underweight from equalweight at Morgan Stanley. The broker said that it cut forecasts for the firms to reflect a weaker operating environment and more expensive debt financing. “Thomas Cook appears to us to have the most forecast risk as it has above-average margins and, we believe, needs to refinance its debts quicker than the market believes, potentially including new equity,” the broker said. Tui Travel is its top pick of the tour operators. Tui Travel shares declined 2.3% and Thomas Cook shares lost 3.9%.