Stock Market News
Cannacord Genuity sees scope for higher dividends at Go-Ahead
A strong balance sheet and "solid" earnings from the bus segment will allow Go-Ahead to maintain or raise its dividends going forward, according to analysts at Cannacord Genuity.
Absent new franchise wins, challenging market conditions in the UK bus markets, together with falling earnings from rail (excluding one-offs), suggested earnings growth would turn negative in coming years, analyst Gert Zonneveld said.
Indeed, at the half-year stage and on a like-for-like basis, regional bus volume growth was down by 1.2%.
However, Go-Ahead was exploring growth opportunities overeas and "in the meantime, a strong balance sheet and solid bus earnings, however, should allow the company to maintain or increase its dividends going forward," Zonneveld explained.
Notably, his comments came even as the shares' dividend yield was running at more than 7%.
Cannacord also noted the reduction in the company's net debt from £286.7m to £254.0.
Zonneveld stuck by a 'buy' recommendation and 2,080p target price on the shares.
Absent new franchise wins, challenging market conditions in the UK bus markets, together with falling earnings from rail (excluding one-offs), suggested earnings growth would turn negative in coming years, analyst Gert Zonneveld said.
Indeed, at the half-year stage and on a like-for-like basis, regional bus volume growth was down by 1.2%.
However, Go-Ahead was exploring growth opportunities overeas and "in the meantime, a strong balance sheet and solid bus earnings, however, should allow the company to maintain or increase its dividends going forward," Zonneveld explained.
Notably, his comments came even as the shares' dividend yield was running at more than 7%.
Cannacord also noted the reduction in the company's net debt from £286.7m to £254.0.
Zonneveld stuck by a 'buy' recommendation and 2,080p target price on the shares.
Related share prices |
---|
Go-Ahead Group (GOG) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price