Share Prices & Company Research

Market News

10 Feb 2021 | 10:53

Canaccord Genuity raises target price on National Express

(Sharecast News) - Analysts at Canaccord Genuity raised their target price on public transport provider National Express from 255.0p to 330.0p on Wednesday, stating it was "increasingly confident" that the firm's financial performance will "largely return to normal" in 2022. Canaccord, which reiterated its 'buy' rating on the stock, said National Express remains, a "quality operator", in its view, with strong customer relationships and best-in-class margins in virtually all its businesses.

The Canadian bank highlighted that National Express had no liquidity concerns and believes the company to be "well-positioned" to bounce back strongly once the Covid-19 pandemic can be brought under control.

"Even though we are reducing our estimates for 2021, we expect the group's financial performance to bounce back strongly in 2022 to approach pre-pandemic levels," which cut its full-year earnings forecasts for National Express from £365.9m to £320.3m.

Canaccord also said it was "increasingly confident" that trading conditions will largely revert to normal by next year, leading it to switch its valuation methodology from a discounted cash flow-based sum-of-the-parts to an earnings multiples-based approach and amend its target price as a result.
Get in touch today
Join Redmayne Bentley
Talk to us now about opening a new account or transferring your account from another provider
0113 243 6941
Get in touch today
Contact your local office
Contact your local office to find out more
The value of your investments and the income from them may go down as well as up, and you could get back less than you invested.
Continuing our Personal Service: View our Latest COVID-19 Update: 14th May 2021
We use cookies on this site to improve your experience and help us provide you with a better website. An explanation of the cookies we use and their purpose can be found within our Cookie Policy. Your continued use of this site means you consent to the use of cookies.