July 1, 2019 / 9:17 AM / 2 months ago

BUZZ-Stagecoach: Down after Deutsche Bank lowers target price

** Shares of train and bus operator Stagecoach Group fall 4.5% to 121 pence

** Deutsche Bank lowers target price to 155 pence from 170 pence

** SGC top pct loser on the FTSE midcap index

** Stagecoach, which faces exclusion from three important rail routes that could cost the company 1 bln pounds, said last week it would no longer bid for new UK rail franchises - a business that has so far accounted for almost half of its revenue

** “We see the various actions (selective price increases, tactical marketing plans, commercial initiatives, bus investments) being taken in regional bus to drive top line growth and to control non-fuel costs” - Deutsche Bank

** Actions would allow stable profitability in FY20, followed by a return to growth in FY21 - Deutsche Bank

** Last week, RBC cut target price to 155 pence from 160 pence after co forecast 2019-2020 oper. profit from its rail business to be minimal, with a 100-mln-pound hit from loss of the franchises (Reporting by Justin George Varghese in Bengaluru)

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