MARKET REPORT: Shares in FTSE 250 postal group Royal Mail plunge after broker paints bleak outlook for future

[TrueBlueTerrier]

https://www.thisismoney.co.uk/money/mar ... lunge.html

Shares in Royal Mail plunged after a broker painted a bleak outlook for its future.

In a blow to the FTSE 250 postal group, JP Morgan lowered the stock's rating to 'neutral' from 'overweight', and cut the target price to 270p from 360p.

'This reflects growing losses in the UK, with no end in sight and potential for losses to climb further,' the broker said. Shares fell 8.1 per cent, or 20.2p, to 229.7p.


The slump was made worse after the US parcels giant FedEx issued a profit warning. Its shares tumbled 22 per cent in New York.

JP Morgan said shares in Royal Mail, which floated in London in 2013, were unlikely to improve while it remained locked in battle with the CWU trade union.

Workers at the postal group were set to go on strike this month but cancelled their action 'out of respect' for Her Majesty Queen Elizabeth II.

JP Morgan lowered its forecast for Royal Mail's parcel volumes for the full financial year in 2023, expecting a 16.6 per cent decline compared with a 12.1 per cent fall last year.

It caps a difficult year for the group, which tumbled out of the FTSE 100 in June. Its shares are down nearly 56 per cent in 2022.

On a day of little corporate news, the FTSE 100 dipped 0.6 per cent, or 45.39 points, to 7236.68 and the FTSE 250 fell 0.5 per cent, or 89.18 points, to 18797.14.

[robking]

Funny how these things always happen just after the 15th of the month, the date when shares are added at the market price to our partership and matching accounts.

[Dorset Plodder]

I often think that Share Dealing takes place in a totally different world to our reality. I know it all affects us, and can have serious consequences for any business, but I take the view that some of these Traderss are even bigger Money Grabbing Crooks than our Board of Directors.

We've all heard enough accounts of dodgy share dealing not to be suspicious whenever these parasites try to make a fast buck ........ regardless of the havoc they cause to thousands of workers, and their families futures. They've got No Moral Compasss at all.