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