National Express-owner Mobico dips on Berenberg cut to "hold"

Mobico

29/05/2024 09:11

** Mobico Group's shares  MCG.L  fall 4.9% to 56.49p after
Berenberg downgrades to "hold" from "buy"
    ** Brokerage cuts PT from 100p to 66p, the lowest among
eight covering analysts, per LSEG data
    ** Mobico, which operates bus, coach and rail services,
reported a 14% fall in 2023 profit last month
    ** Berenberg says MCG does not have a rev problem, but costs
have risen far and ahead of rev growth, hurting margins
    ** "We can no longer, with confidence, say the shares should
be meaningfully higher on a 12-month view based just on organic
performance"
    ** Says upside is possible from various areas, incl sale of
North America School Bus business, but adds, "we struggle to see
it getting attractive terms"
    ** MCG stock extends YTD losses to ~33% YTD

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com;))