Shares in Royal Mail owner remain on the sell list after union blast at Labour conference
Panmure Liberum has reacted to the Communication Workers Union (CWU) speech at the Labour Party conference, reiterating its 'sell' recommendation for International Distributions Services PLC (LSE:IDS), owner of Royal Mail, with a target price of 200p.
The CWU called for new governance or ownership models for Royal Mail, although nationalisation was not mentioned.
Panmure Liberum believes any new structure would be easier to implement if Royal Mail remains publicly listed rather than privately owned.
The investment firm remains doubtful that the UK government will approve the proposed takeover by Daniel Křetínský’s EP Group, citing political risks, particularly ahead of potential changes to the Universal Service Obligation.
Panmure Liberum argues that any such reforms would benefit Royal Mail’s new owner. IDS shares, up 1.6p at 342.8p, face further uncertainty as the market awaits the government’s decision.