Long-term trends set to favour transport sector

Jupiter is positive on transport-ation favouring stocks in the bus and rail sub sectors due to their relatively attractive valuations. Kenneth Warnock, manager of the Jupiter Enhanced Income investment trust, says: "Due to low ratings, predictable earning streams and the consolidation that is happening, the transport sector is our main area of focus." Jupiter holds First Group and Arriva, because Warnock considers them relatively cheap with well-respected management, good franchises and increasing M&A activity. He believes the Government's initiative to increase the use of public transpor...