Liberum expects National Express to restart dividend in 2021

Analysts at Liberum cut their target price for shares of National Express on the back of its recent dilutive equity offering and on the back of lower profit estimates.

However, they believed that at their current price the shres were "overstating" the short-term risks.

They were also understating the expected "eventual recovery" in earnings, further pointing out that the now stronger balance sheet would allow the dividend to be restarted in 2021.

Having raised cash, the company would also now be able to pursue growth opportunities.

So while the analysts cut their earnings per share estimates for 2021 and 2022 by 17%, and lowered their target price from 425.0p to 390.0p, they kept their recommendation at 'buy'.