Deutsche Post: Credit Suisse upgrades stock

(CercleFinance.com) - Credit Suisse has increased its target price for the Deutsche Post stock by 13% to 32.
03 euros (vs. 28.36 euros), based on revised capex expectations and a lower pension deficit.
The broker has also upgraded its recommendation for the share to Neutral (vs. Underperform).

"We cut our 2020E EBIT by 24% to E3.36bn, and our 2021E EBIT by 10% to E4.6bn; both numbers are broadly in line with company-provided consensus, although our 2021E FCF of E1.5bn lies below consensus FCF of E1.8bn," Crédit Suisse said.

"In the short term, we think tight supply and access to air lift are likely to combine to drive Express EBIT 4% ahead of consensus in 2020E and 7% in 2021E," the broker adds.


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