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The Expert View: Xaar, HSBC and Anite
by Chris Marshall on Dec 10, 2013 at 05:01
‘Self-help’ opportunity offers ‘clear upside’ for FirstGroup
Khoo identified three main risks for the sector: renewals of contracts; rule changes, with the potential re-regulation of UK bus services; and the possibility of rail renationalisation should Labour win the next General Election.
He concluded: ‘We prefer stocks that have self-help initiatives that can deliver material earnings improvements despite these overhanging uncertainties.’
FirstGroup has the ‘clearest self-help opportunities’, he said. ‘Although there is no silver bullet solution… low investor expectations create the opportunity for outperformance through a steady recovery.’
Shares in FirstGroup rose 0.3% on Monday, to 117p.
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