Jefferies analysts believe shares in National Express owner, Mobico Group PLC (LSE:MCG), are looking at a 67% upside, despite news of the company’s chief financial officer resigning.
Though Mobico was sent 9% lower following a delayed trading update and details of James Stamp’s departure on Monday, Jefferies batted off concerns in a note.
“An interim chief financial officer with turnaround experience [is] joining in mid-June,” analysts highlighted.
Attention will likely also turn to Mobico’s disposal of its North American school bus business in the meantime, analysts continued.
“Encouraging” first-quarter trading should to aid its valuation, Jefferies said, with route recovery from new contracts slightly ahead of expectations, according to Mobico
“We continue to expect the disposal to prove a material positive catalyst, kick-starting a debt-to-equity value transfer, followed by a deleverage-driven re-rating journey,” analysts added.
A 100p share price target was laid out as a result, marking a 67% upside on Friday’s close.