Go-Ahead Group Share Price Forecast December 2021 – Time to Buy GOG?

Shares of passenger transport company Go-Ahead Group (LSE: GOG) are in the green today, currently trading at 601p at the time of writing. GOG shares had an awful start yesterday when it opened 20% down. The company has struggled for the last 6 months where it has fallen by 54%.

Go-Ahead Group –  Technical Analysis

Go-Ahead Group’s financial statement indicates that the market cap of the company is at £27.583 billion with total assets worth £202.68 billion. Revenue for 2020 was at £389.84 billion with a profit margin of -0.73% compared to £367.42 billion in 2019.

Oscillators such as Stochastic RSI Fast (3, 3, 14, 14)(29.1), Williams Percent Range (14)(−68.3),  Bull Bear Power(−158.3) and Ultimate Oscillator (7, 14, 28)(46.3) are neutral. Moving averages such as Exponential Moving Average (10)(674.3), Simple Moving Average (10)(677.5), Exponential Moving Average (20)(702.8), Simple Moving Average (20)(708.1) and Exponential Moving Average (30)(724.6) are indicating a sell action.

68% of all retail investor accounts lose money when trading CFDs with this provider.

Recent Developments

Go-Ahead is known for providing integrated public transport through bus operations and commuter train services as well as aviation ground handling services. It controls almost 6% of the UK public transport market. The company has diversified operations across countries like Singapore, Germany, Ireland, Norway and the UK. This means that besides the pandemic, it usually can mitigate risks if there are economic challenges in one country.

Go-Ahead Group has had an overall bad last year, with the shares currently down by 43% compared to last year. Investors are scared of even more problems to the share price as Go-Ahead Group has just said that it would be unable to release its results in time. This would directly lead to a suspension in trading in its stock from 4 January 2022. The results are expected to be released by the end of this month, after which it will restart trading.

Additional problems have been experienced by the company due to its franchise London & South Eastern Railway Ltd (LSER), which failed to notify the Department of Transport about overpayment of some monies. As a result, the subsidiary’s delivery of services has been taken over by the department, with LSER’s contract not renewed.

This problem can pose a long-term consequence for the company in terms of reputation. This could also decrease its revenues and its future revenue stream. This is proof that travel-related companies during the pandemic, which is not exactly over.

Should You Buy GOG Shares?

There are certain risks for investors to consider before they go for GOG Shares. The company remains vulnerable to any fluctuations in the UK market which makes up most of its revenue until its other revenue streams have developed enough.

Brexit also possess a continuous threat. While the EU-UK trade deal is in place, for now, any changes in the company’s operations can occur due to the availability of spare parts. The world’s increased focus on clean air can also pose a risk to the company.

The current situation suggests that the shares aren’t a total write off and was in a good position before the current pandemic. The success of this company depends on it finding favour with both the authorities from which it gets business and of investors. However, investors should thus watch developments for the next few months before thinking of buying the shares.

Buy GOG Stock at eToro from just $50 Now!