PostNL: Jefferies downgrades to 'hold', shares down
(CercleFinance.com) - On Friday Jefferies downgraded Dutch mail company PostNL from "buy" to "hold," citing valuation grounds.
"Near-term EBIT expectations were reset by 20%-30% due to a slowdown in cost savings plans (...) pending the takeover of Sandd, while the dividend will likely be skipped for two years, in view of higher capex, working capital and pension funding," the US broker said in a note to investors.
Jefferies analysts also slashed their target price for the stock from 4.50 euros to just 2 euros.
After these comments, PostNL shares were trading down 3.1% at 1.7 euros in afternoon trading on Euronext Amsterdam.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
"Near-term EBIT expectations were reset by 20%-30% due to a slowdown in cost savings plans (...) pending the takeover of Sandd, while the dividend will likely be skipped for two years, in view of higher capex, working capital and pension funding," the US broker said in a note to investors.
Jefferies analysts also slashed their target price for the stock from 4.50 euros to just 2 euros.
After these comments, PostNL shares were trading down 3.1% at 1.7 euros in afternoon trading on Euronext Amsterdam.
Copyright (c) 2019 CercleFinance.com. All rights reserved.