Royal Mail: Liberum upgrades stock
(CercleFinance.com) - Liberum has upgraded its rating on Royal Mail shares from "sell" to "hold," almost doubling its corresponding target price from 165 pence to 320 pence (current price: 314 pence, +2%), believing that "Execution risks remain substantial, but the outlook is now more balanced".
"The structural challenges in the UK have not been changed by the surge in parcels volumes fuelled by online retail," the broker acknowledges in its comments on the incumbent postal operator in the UK.
"Combined with the ongoing strength at GLS, this has given Royal Mail more breathing space in which to find, agree and implement solutions to its long-term problems," it continues.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"The structural challenges in the UK have not been changed by the surge in parcels volumes fuelled by online retail," the broker acknowledges in its comments on the incumbent postal operator in the UK.
"Combined with the ongoing strength at GLS, this has given Royal Mail more breathing space in which to find, agree and implement solutions to its long-term problems," it continues.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.