Royal Mail owner International Distributions Services PLC (LSE:IDS) was reiterated as a 'sell' for broker Liberum in what is a crucial week in the ongoing UK industrial dispute.
If a deal is not agreed with its main union, the Communication Workers Union (CWU), further strike action is likely.
On Tuesday morning the CWU member groups launched ‘no confidence’ votes against Simon Thompson, chief executive of the Royal Mail business, after he "presented a take-it-or-leave-it proposal to the union that was subsequently rejected by the union’s national leadership".
The CWU said the proposals were "not in line with sentiment between the two parties" at the talks hosted by ACAS.
Royal Mail management has threatened to terminate talks if there are further strikes.
"With or without a deal, we remain sceptical about management’s ability to successfully execute restructuring and reap the associated benefits," said analyst Gerald Khoo.
"The recent track record has been poor, and that was without union opposition."
The 'sell' recommendation is paired with an unchanged target price of 115p.