FirstGroup cut to 'hold' by Panmure on recent share price strength

10th Jun 2015 12:37

Panmure Gordon cut FirstGroup to 'hold' from 'buy', noting that the shares have performed strongly in recent months and hit the brokerage's 120p price target.It said the company's full-year numbers on Wednesday were in line with expectations and showed a good improvement. "After three years of margin deterioration, UK bus margins finally started to recover a bit," said Panmure.In addition, it noted that UK Rail achieved a strong 34% improvement in operating profit to £74.1m.At 12:50, the shares were up 5% at 125.30p.