Rating is fair and management has a track record of cost cutting. The target price is 490p.
Numis is more bearish, with a sell rating and target of 360p.
Wage talks with the main trade union, the CWU, have begun says the broker and the Union is taking a hard line.
Pay and pension talks, and a regulatory review are ongoing headwinds, but Numis’s view is based on the expectation parcels growth will disappoint in the long term.
Numis downgrades bus and rail group Go-Ahead (LON:GOG) to hold from buy. There are few short-term catalysts for the shares and only modest upside thought the target price rises to target price to 2,860p from 2,750p.
Citgroup does expect a dividend cut as HSBC PLC (LON:HSBA) even though earnings are under pressure, led by a slowdown in HK and lower UK/US base rates for longer. But 2016 capital generation, boosted by the sale of Brazil, should be more than sufficient to maintain the current dividend.
Liberum says hold BP (LON:BP.) with a target of 382p
Replacement cost net income was US$532mln in the latest quarter compared to consensus of a loss of US$215mln but was still 80% down on a year ago.
Overall, the results look better than consensus and solid. The Downstream and Upstream performances improved but both have further to go for positive cash generation.