Credit Suisse downgraded Royal Mail on Thursday to ‘underperform’ from ‘neutral’ and cut the price target to 345p from 558.11p, citing 10% potential downside. The bank pointed to downside risk to consensus parcel volume expectations of +3% in 2022-23 as it believes only a partial normalisation of online shopping habits …
Read More »JPMorgan puts Royal Mail on ‘Negative Catalyst Watch’, shares slump
Royal Mail slumped on Friday after JPMorgan Cazenove placed the shares on ‘Negative Catalyst Watch’ ahead of the company’s next update on 10 February. “While we don’t expect a disappointment on revenue, this will be supported by Covid testing and so will reverse over time,” JPM said. “We also believe …
Read More »Barclays hikes Royal Mail price target on growth expectations
Barclays hiked its price target on Royal Mail to 640p from 550p on Thursday, citing expectations of growth in FY23. The bank said it expects “solid” Christmas trading, as indicated by the recent ‘Barclays UK Spend Trends’ discretionary retail spend signal. “UK domestic volumes continue to be supported by antigen …
Read More »Royal Mail sells last 3 Nine Elm plots for £112m
Royal Mail on Monday said it had exchanged contracts to sell the last three remaining plots on its Nine Elms Park site to London Square for £111.2m. Profits from the sale would be used in line with Royal Mail’s capital allocation policy, with around £35m to be reinvested into the …
Read More »Thursday preview: Philly Fed, Royal Mail in the spotlight
The key data release on Thursday was expected to be the Philly Fed´s regional manufacturing index, which economists believed would reveal a small improvement in activity levels for the month of November. As ever, investors would likely also be keeping close tabs on the latest weekly unemployment claims figures. The …
Read More »Sunday newspaper round-up: IAG, The Hut Group, Nvidia
A cash call would be the quickest way for IAG to tackle its €12.3bn of debt and begin paying a dividend again, HSBC aviation analyst Andrew Lobbenberg said. If not, then the carrier would have to resort to its cash flows. Any decision on a rights issue would likely be …
Read More »UBS downgrades Royal Mail to ‘sell’, shares tumble
Royal Mail shares tumbled on Wednesday as UBS downgraded them to ‘sell’ from ‘buy’ and cut the price target to 440p from 590p. The bank said risks to opex were increasing, with potential pricing pressure in UK Parcel. UBS cut its FY22/23 EBIT estimates by 8%/15%, mainly driven by higher …
Read More »Royal Mail sees higher H1 profit as revenues rise 8%
Royal Mail said it expected a rise in first half profits despite rising costs as the pandemic-driven boom in parcel delivery from online shopping continued to drive revenue growth. The letter and parcel carrier said revenues climbed 8.2% to £5.1bn in the five months to August. It added that it …
Read More »Jefferies upgrades Royal Mail to ‘hold’
Jefferies upgraded its stance on shares of Royal Mail on Tuesday to ‘hold’ from ‘underperform’ and hiked the price target to 450p from 300p. The bank said a better-than-expected peak season and ongoing Covid-19 restrictions lead to a 60% increase in its FY20/21E operating profit forecast to £580m. “We estimate …
Read More »Berenberg upgrades Royal Mail, says risks are more balanced
Berenberg upped its rating on Royal Mail on Tuesday to ‘hold’ from ‘sell’ and hiked the price target to 280p from 137p as it said risks remain but are now balanced. The bank noted that despite a severe hit to mail volumes, Royal Mail has been relatively successful during the …
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