Mobico Group: Promising Growth Amidst Challenges and Strategic Restructuring Opportunities

Analyst Matthew Copeland of Jefferies maintained a Buy rating on Mobico Group (MCG – Research Report), reducing the price target to p70.00.

Matthew Copeland’s rating is based on several factors that highlight the potential for Mobico Group’s stock. Despite recent challenges, including a significant drop in share value following an unsatisfactory disposal of the School Bus division, the company shows promise due to its remaining operations. These operations are characterized by higher growth prospects, improved profit margins, and better cash generation capabilities.
Additionally, the company is on a clearer path to reducing its debt organically over the medium term. The potential for further asset disposals and the current low share price have generated discussions among investors about possible restructuring or acquisition opportunities. As a result, Copeland has introduced a new sum-of-the-parts valuation and adjusted the price target, reflecting a more attractive investment outlook.