Royal Mail rallies after JPMorgan upgrade

Royal Mail shares rallied on Friday after JPMorgan Cazenove upgraded its rating to ‘neutral’ from ‘underweight’.

It said that while the UK turnaround is far from certain, stronger short-run trading has at least bought some time, and should prevent a build-up of net debt.

“The CWU negotiations appear to be the main ongoing concern,” it said.

The bank said it has increased its forecasts “materially”, as it lifted its price target to 253p from 145p.