Investec has upgraded its recommendation on Stagecoach (LON:SGC) to 'hold' from 'reduce' following the recent share price weakness and despite the transport group reporting "a lacklustre trading update".
The broker reckons the company continues to face various different pressures including low oil prices and borrowing costs encouraging customers to switch towards car and air travel. It added that "these trends do not appear likely to change soon".
Analysts have trimmed their target to 220 pence a share (from 230 pence), implying a forecast total return of around 10 per cent.
At 1:46pm: (LON:SGC) Stagecoach Group PLC share price was +5.35p at 212.55p