MARKET TALK: Shore Upgrades Go-Ahead To Buy From Hold

14th Jun 2010 12:23

1123 GMT [Dow Jones] Shore Capital upgrades Go-Ahead Group (GOG.LN) to buy from hold, saying it is possibly the only UK rail operator to retain a significant element of cyclical upside from an improvement in rail volumes. "With around 30% of group profits generated from rail operations, high operational gearing could drive earnings growth in the near term, with, we estimate, every 1% increase in rail revenue increasing EPS by 6.9%." Furthermore, reckons Go-Ahead remains well placed to potentially win an additional franchise, with three franchises up for renewal in '10/'11. Shares +1.6% at 1237p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 14, 2010 07:23 ET (11:23 GMT)