Citi latest to upgrade Royal Mail Group PLC as shares near three-year high

Citigroup has joined the clutch of brokers upgrading the share price target for Royal Mail Group PLC ().

The US bank said following last week;s trading update, it expects 20121 adjusted operating profits of £708mln compared to its forecast of £504mln previously.

Citi’s target price rises to 635p compared to 600p previously.

Last week, JP Morgan has raised its price target on Royal Mail to 704p but said the shares have the potential to go even higher.

In its trading update, the postal service said it expects revenues to be some £900mln higher than expected in the year to end-March due to the surge in parcel volumes sparked by the switch to shopping online during the pandemic.

Shares today were 503.4p, close to a three -year high.