MARKET TALK: BofA Merrill Cuts Go-Ahead Group To Underperform

28th Jun 2010 09:34

0834 GMT [Dow Jones] Bank of America Merrill Lynch lowers Go-Ahead Group (GOG.LN) to underperform from neutral and lowers price objective to 1260p from 1530p. Brokerage also lowers its FY10 EPS estimate to 121.1p from 123.5p and FY11 estimate to 106.9p from 127.9p. Says the majority of the FY11 decline is driven by cost pressures in rail, while the longer-term downgrades stem from more structural issues facing London bus, as budget headwinds increase. "With a lack of near-term positive catalysts, we are lowering our recommendation," it adds. Shares -3% at 1132p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 28, 2010 04:34 ET (08:34 GMT)