LONDON (ShareCast) - Expectations that the current economic turmoil will boost bus use prompted JP Morgan to raise its target prices on Arriva, National Express and Stagecoach.

Its target price on Arriva rises to 1,341p from 1,164p, on National Express to 1,341p from 1,164p and on Stagecoach to 295p from 261p.

JPM notes that Arriva, on which it keeps its ‘overweight’ rating, has the lowest rail exposure in the sector.

“We see the shares as the most defensive of the UK public transport operator group, with no London-orientated rail exposure,” the broker said.

It also keeps its ‘overweight’ recommendation on National Express, noting that it trades at a price/earnings ration below its peer group with above average earnings growth.

However, the broker is ‘underweight’ on Stagecoach, noting that it has higher rail exposure in the short term.

• News Channel