Royal Mail: Liberum no longer a seller

(CercleFinance.com) - Liberum has cut its target price on Royal Mail from 240 pence to 185 pence, but has upgraded its rating on the share from "sell" to "hold," citing valuation grounds.


In a note to clients, the British broker says Royal Mail's new strategy - becoming a parcels business that delivers letters - has brought clarity to how management intends to deal with the structural challenges.

However, Liberum says it remains "deeply cautious" about the short-term outlook, believing that there could be yet more downside risk on the stock in the short term.

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