Go-Ahead PLC has started to recover after being fined and slated by the government for "an appalling breach of trust" over its running of the London & South East rail franchise.
Of course, that didn’t stop another of Go-Ahead’s outfits from being awarded a new rail contract days later and broker RBC sees that helping shares in the public transport provider to recover further.
It's Go-Ahead’s bus arm that appeals most to the Canadian broker, which sees the household income squeeze forcing more people out of their cars and onto buses.
“We note bus usage progressively increased in the decade up to 2008-09 in an environment of rising fuel prices and increasing government support for bus services.”
RBC has trimmed its price target slightly to 1,00p from 1,030p but that compares with 839p currently.