Royal Mail PLC (LSE:RMG) is facing “a number of significant challenges”, said Deutsche Bank, which slashed its target price to 144p as it reiterated its 'sell' rating.
Analysts at the German bank said challenges have become more acute since its last note nearly two months ago.
Challenges include a “rapidly weakening macro-economic backdrop for the UK that will impact consumer demand, lower productivity due to the stand-off with the unions over pay and both direct and indirect consequences of strike action”.
Royal Mail staff are set to strike today and tomorrow, as well as several other dates in the run-up to Christmas.