Royal Mail: Liberum still a seller - cuts target

(CercleFinance.com) - Liberum repeats its "sell" rating on the Royal Mail share, cutting its corresponding target price to 120 pence (from 175 pence), noting that "Management openly questioning the achievability of its 2024 targets just nine months after its strategy launch is hardly encouraging.
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"Margins continue to be squeezed by declining Letters revenues and poor productivity. Staff and union co-operation is needed to deliver the recovery, but industrial action seems more likely. We see the dividend as potentially unsustainable."


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