In a report released on September 9, Matthew Copeland from Jefferies maintained a Buy rating on Mobico Group, with a price target of p70.00.
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Matthew Copeland has given his Buy rating due to a combination of factors that indicate potential for future growth and recovery for Mobico Group. Despite a significant drop in share value this year, largely due to the underwhelming sale of the North America School Bus division, the remaining company (remainco) shows promise with higher growth prospects, better margins, and increased cash generation capabilities.
The company’s first-half results for 2025 demonstrate a 7% increase in revenues, although EBIT faced a temporary decline due to operational challenges. However, the guidance for the full year remains optimistic, with expected EBIT growth. Additionally, the remainco is trading below its historical average, suggesting potential for valuation improvement. With new management in place, there are expectations for updates on growth and deleveraging strategies, further supporting the Buy rating.
According to TipRanks, Copeland is an analyst with an average return of -25.1% and a 17.65% success rate.