Proactive Investors - Run By Investors For Investors

Stagecoach upgraded after ‘overreaction’ to outlook

Stagecoach upgraded after ‘overreaction’ to outlook
The bus and train Group saw an upgrade and two (slight) downgrades

You wait for a broker recommendation for a bus company, then three come along at once.

Stagecoach Group was in the spotlight on Thursday with an upgrade and two (slight) downgrades.

Citigroup raised its recommendation to ‘buy’ from ‘neutral’, while Deutsche Bank and Barclays - which already rate the company as ‘buy’ and ‘overweight’ respectively - revised down their price targets.

Deutsche cuts its target to 390p from 460p, and Barclays’ drops to 340p from 400p.

It comes after the coach and rail group’s financial results for the first half year, which included what Deutsche called “surprisingly weak commentary”.

Stagecoach shares tumbled around 14% yesterday.

Citi, in its upgrade note, meanwhile says there’s been an overreaction to the company’s weaker guidance.

Elsewhere, Citi downgraded product tester Intertek (LON:ITRK) to ‘sell’ as it highlighted what it described as “US dollar distortions”.

Morgan Stanley has downgraded IMI (LON:IMI) to ‘equal weight’  from ‘overweight’.

RBC Capital has downgraded speciality insurance group Lancashire Holdings (LON:LRE) to ‘underperform’ from ‘sector perform’.

It also downgraded wealth manager St James Place (LON:STJ) to ‘sector perform’ from ‘outperform’.

Jamie_55a91591db06b.jpg


Register here to be notified of future SGC Company articles

No investment advice: The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2019

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use