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Stagecoach shares fall as Liberum downgrades its rating to ‘hold’

In a note to clients, analysts at Liberum said they have adopted a more cautious longer-term outlook for the group’s bus divisions

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In morning trading, Stagecoach’s shares fell 2.24% to 139.5p

Stagecoach Group PLC (LON:SGC) shares fell on Wednesday morning as Liberum Capital downgraded its rating to ‘hold’ from ‘buy’ as caution on UK Regional Bus outweighs the high dividend yield.

The City broker also cut transport operator’s price target to 145p from 185p.

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In a note to clients, analysts at Liberum said they have adopted a more cautious longer-term outlook for the group’s bus divisions.

The analyst said: “Further disappointments if combined with a failure to win new profitable rail franchises would put dividend at risk.”

“However, with little prospect of rapid progress at the bus divisions and significant doubts about the potential profitability of future rail franchises, a more cautious stance is warranted,” the analysts concluded.

In morning trading, Stagecoach’s shares fell 2.24% to 139.5p.

 

Quick facts: Stagecoach Group PLC

Price: 46.14 GBX

LSE:SGC
Market: LSE
Market Cap: £253.92 m
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