logo-loader
viewRoyal Mail PLC

Royal Mail target price cut by Deutsche Bank as it lowers forecasts after warning

The German bank's analysts have reduced the mail delivery firm's target price to 93p from 100p

Royal Mail PLC - Royal Mail’s target price cut to 93p by Deutsche Bank over new, lower forecasts

Royal Mail PLC (LON:RMG) has seen its target price cut to 93p from 100p by Deutsche Bank on the back of lower forecasts, following Friday’s profit warning.

Analysts at the German bank now expect the letter and parcel carrier to post a loss of £131mln for the current financial year. The previous estimate was for a profit of £57mln.

READ: Royal Mail warns of ‘significant uncertainty’ as coronavirus hits UK post and key Italian parcel market

Royal Mail said last week that it expected its UK post business to be “materially loss making” this year due to the coronavirus pandemic as marketing campaigns, particularly from the travel sector, were cancelled.

Deutsche Bank's analysts noted that it is difficult to forecast volumes and pricing and the “dramatic impact” they can have on profits.

Royal Mail shares still rose 1% higher to 127p on Tuesday morning, reflecting a market rally.

Quick facts: Royal Mail PLC

Price: 176.35 GBX

LSE:RMG
Market: LSE
Market Cap: £1.76 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Duke Royalty Limited 'doing just fine' by maintaining a diversified...

Duke Royalty Limited (LON:DUKE) CEO Neil Johnson tells Proactive the provider of alternative capital solutions is 'doing just fine' and withstanding the current pandemic situation by maintaining a diversified portfolio. Johnson says Duke, which recently reported a trading update, has exposure...

2 days, 20 hours ago

2 min read