(ABM FN-Dow Jones) Jefferies lowered the price targets for PostNL and Bpost on Friday, and also removed Bpost shares from the sell list. This emerged from a report by analyst David Kerstens.
Kerstens lowered the price target for PostNL from 1.50 to 1.20 euros and maintained the Hold recommendation. For Bpost, the price target went from 3.80 to 3.50 euros, but the recommendation was increased from Underperform to Hold.
Kerstens implemented the changes after the quarterly figures of the postal companies. These showed relatively weak mail volumes, in combination with, for example, higher labor costs. “And this led to stronger than expected margin pressure,” the analyst said.
Since the beginning of this year, Kerstens has reduced his EBIT assessment for 2024 for Bpost by 19 percent and for PostNL even by 40 percent.
The reason for Jefferies to remove Bpost from the sales list is that Kerstens believes that the concerns about the end of the press concession have now largely been priced in.
Kerstens awards PostNL a premium of 15 percent compared to Bpost.
PostNL closed at 1.24 euros in Amsterdam on Thursday. Bpost closed at 3.43 euros in Brussels.
Source: ABM Financial News
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