FirstGroup can grow despite UK rail nationalisation, says broker Panmure Liberum

Broker Panmure Liberum maintains a 'buy' rating on FirstGroup, stating the company can continue growing despite the UK government's rail nationalisation plans. The broker highlights that FirstGroup is replacing lower-quality rail contract earnings with more sustainable profits from its bus and open access rail businesses. Growth opportunities exist in expanding open access rail capacity and winning regional bus contracts, while the company's strong balance sheet supports further expansion and shareholder returns. Overall, the shift to public ownership of rail contracts is unlikely to impact FirstGroup's valuation significantly.