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Royal Mail has at least one admirer (although even it has slashed its price target)

"We have revised our forecasts and our target price in the wake of the recent profit warning," Barclays Capital said. The broker said there had been "a sizeable cut to our expectations for this year and beyond"
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Barclays remains one of the few brokers still advocating topping up holdings in Royal Mail PLC (LON:RMG) following the recent profit warning.

Barclays Capital has slashed its price target to 410p from 605p but as that is still above the current price of 348.5p – down 1.3% on the day – it is sticking with its ‘overweight’ rating.

READ: Royal Mail says UK letters volumes and productivity down, shares plunge

The broker is out of step with most brokers, many of which have also slashed their price targets and declined to move to a more bullish position, despite the 150p (or so) fall in the share price since the profit warning.

Liberum Capital Markets stuck with its ‘sell’ recommendation and slashed its target price to 250p.

Citigroup cut its rating on Royal Mail to ‘sell’ from ‘neutral’ with a target price of 300p.

UBS slashed its price target to 354p from 528p and reiterated its ‘neutral’ stance.

HSBC downgraded to ‘hold’ from ‘buy’ after what it called a “productivity bombshell” and slashed its price target to 379p from 552p.

RBC Capital Markets moved to ‘underperform’ from ‘sector perform’ and its price target was chopped to 315p from 500p.

JPMorgan Cazenove lopped almost two quid off its price target, which now stands at 341p.

Barclays said the profit warning had prompted it to make sizeable reductions to its forecasts.

READ: Royal Mail looks like the proverbial falling knife

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