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Thomas Cook Shares Drop 16% amid Brexit Concerns


Fri 08 Feb 2019 | 07:52 PM
Taarek Refaat

By: Taarek Refaat

LONDON, Feb. 8 (SEE)- Thomas Cook shares dropped 16 percent on Friday to mark its biggest loss in two months amid doubts regarding the company's future after the Brexit.

Shares of the UK-based tourism company were constrained after JPMorgan cut its price estimate, indicating that Thomas Cook airlines could face difficulties selling its own aviation business.

The stock posted remarkable gains on Thursday after the company announced it was reconsidering a strategy for the airline sector, seeking to obtain funds for further investment in the hotel sector.

After yesterday's announcement, JPMorgan analysts cut their estimates for the price of Thomas Cook by 17 percent, noting that there are only a few obvious buyers. "Any buyer should look at EU ownership laws regulating Air Operator's Certificate (AOC) before acquiring shares," JPMorgan announced in a statement.

The 16 percent devaluation is the worst in the Financial Times Stock Exchange (FTSE).