East Value Research Maintains "Buy" Recommendation for Rainbow Tours S.A.

East Value Research GmbH has maintained a "Buy" recommendation for Rainbow Tours S.A., highlighting its significant presence in Poland and Romania. Despite the attractiveness of these markets, Rainbow Tours faces challenges linked to the Middle East conflict, specifically the Iran war which has escalated jet fuel costs by 127.2% year-over-year. Additionally, currency fluctuations are impacting costs, with the Polish Zloty weaker against the Euro and US Dollar.

The company's Q3/26 preliminary revenues rose by 13.8% year-over-year to PLN 2.39 billion. However, EBITDA and net income are projected to decline by 24.1%. The report suggests sustained adverse effects from fuel and currency rates into the next quarters. Yet, the 12-month target price remains at PLN 204.70, driven by a higher net cash position and favorable peer-group valuation. Despite lower profitability, Rainbow Tours remains an appealing option for dividend-oriented investors.