Royal Mail: Liberum cuts target price

(CercleFinance.com) - Liberum maintains its 'sell' rating on Royal Mail shares, having reduced its target price for them from 205p to 185p, saying that "Imminent industrial action in the UK makes it more likely the group pursues a separation of GLS".


"This would aim to protect GLS from a downward financial spiral in the UK that could result from the failure to implement meaningful restructuring," the broker summarised regarding the UK postal operator.

"However, if further capital must be injected into a UK business that ultimately fails to restructure, a negative present value is entirely plausible, but not currently priced in," it added.


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