July 2, 2019 / 10:24 AM / 2 months ago

BUZZ-Stagecoach: Liberum upgrades to 'buy' on "more attractive" valuation

** Shares of train and bus operator Stagecoach Group rise as much as 6.7% to 125.2 pence, last up 1.8%

** Brokerage Liberum raises rating to “buy” from “hold”

** Liberum says recent weakness in the share price has left Stagecoach’s valuation appear more attractive

** Shares have fallen 9.9% in the year so far, down 21.5% in the last 12 months

** Stock currently has a market valuation of 665 million pounds ($839 million)

** “A dividend yield of 6.6% is supportive, and with management guiding to a more moderate capex/depreciation rate than we had previously assumed, we are somewhat more relaxed about the group’s free cash flow,” analysts at Liberum said in a note

** 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 ($1 = 0.79 pounds) (Reporting by Justin George Varghese in Bengaluru)

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