We initiate our coverage of Rotala plc (“ROL”) with a BUY recommendation. The Group looks to offer investors an attractive 4.8% yield rising to 5.2% in 2018. This dividend is well covered (2.7x in FY18) and has grown in six consecutive years. The Bus Services Act 2017 represents an exciting opportunity for ROL to increase its market share in the c£500m Manchester and West Midlands markets. The potential created by this new legislation now makes Rotala an attractive growth play as well as an appe ....
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The Bus Services Act – Disruption in the UK bus market
- Published:
12 Jan 2018 -
Author:
Thomas Like -
Pages:
15
We initiate our coverage of Rotala plc (“ROL”) with a BUY recommendation. The Group looks to offer investors an attractive 4.8% yield rising to 5.2% in 2018. This dividend is well covered (2.7x in FY18) and has grown in six consecutive years. The Bus Services Act 2017 represents an exciting opportunity for ROL to increase its market share in the c£500m Manchester and West Midlands markets. The potential created by this new legislation now makes Rotala an attractive growth play as well as an appe ....