Thomas Cook Group Plc’s shares are effectively worth nothing right now, according to analysts at Citigroup Inc, who cut their price target to zero pence from 28 pence.

The travel operator’s earnings outlook is much worse than expected and, even though Citi estimates its tour operations and airlines businesses are worth around 738 million pounds, the amount of debt held by the company wipes out this value. This “implies zero equity value,” analysts led by James Ainley wrote in a note, cutting the stock to a sell rating.

Thomas Cook shares fell as much as 38 percent, adding to a 15 percent drop after reporting results on Thursday. The company warned it faces another tough summer and a lifeline loan from its lenders depends on the sales of its airline unit. The shares are now down around 90 percent in the past 12 months.

Sam Unsted, ©2019 Bloomberg L.P.

And the misery doesn’t stop there. Citi also believes that the battering the company has received may “unsettle consumers and drive further weakness in bookings.” And it could cause hotel partners to tighten payment terms, putting further strain on the company’s finances.

Among other analysts, Oddo BHF also cut the stock to reduce from neutral on Friday. The company now has 3 buy ratings, 7 holds, and 4 sells, with an average price target of 28 pence, according to analysts tracked by Bloomberg.

A spokesman for Thomas Cook said the company had no comment on the Citi report.

— With assistance from Joe Easton.

©2019 Bloomberg L.P.

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Photo Credit: Thomas Cook has said it wants to sell Condor, one of its airlines. The company's shares have taken a major hit recently. Thomas Cook