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The Expert View: JD Sports, Go-Ahead and Dairy Crest
by Chris Marshall on Sep 20, 2013 at 05:01
On the buses for Go-Ahead gains
Investors should be ‘overweight’ shares in Go-Ahead Group (GOG.L), the operators or rail and bus services, say analysts at Morgan Stanley.
As well as upping their rating from ‘equal-weight’, the investment bank’s number-crunchers have upped their target price to 1860p, which would mean a rise of 16%.
While they remain cautious on the group’s rail division, the analysts point to three reasons to buy the shares: an improved outlook for bus profits; the group’s lower guidance on capital expenditure requirements for its bus services in 2015 and 2016 (yet still growing EBITDA or earnings to over £100 million); and the attractive valuation of the shares
‘The shares look too cheap if >£100m of bus EBITA is delivered by F2016,’ they say.
Shares in Go-Ahead rose by 1.8% to £16.60 on Thursday.
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- ASOS PLC (ASOS.L)
- Go-Ahead Group PLC (GOG.L)
- United Utilities Group PLC (UU.L)
- Dairy Crest Group PLC (DCG.L)
- JD Sports Fashion PLC (JD.L)
On the road
on Dec 06, 2013 at 14:28