Portugal's CTT slides on potential normalisation of market expectations
09/05/2025 10:03
** Shares of Portugal's postal service operator CTT CTT.LS slump over 11% after it reported on Thursday afternoon its first-quarter results ** The company's net profit fell almost 26% year-on-year ** João Queiroz from Banco Carregosa points out that the results were penalised by a high comparison base and the one-off impact of "non-recurring" revenues in the same period of 2024 ** "In the short term, the market seems focused on the compression of net results and the pace of conversion into cash flow, but a prudently constructive view remains for the medium term, supported by business diversification and structural improvement of its banking business under the Banco CTT banner, which continues to show promising expansion and growth metrics," it says ** Despite a sharp intraday fall, the analyst notes that CTT's annual performance remains "remarkable" and the stock trades above sector average, indicating potential market reassessment of the resilience of consumption and demand for logistics and financial services amid increasing macroeconomic uncertainty ** It believes the market reaction may signal normalisation of expectations after a strong recovery cycle ** Stock on track for its worst day since November 2017 and hits the bottom of Lisbon's blue-chip PSI index .PSI20 (Reporting by Marta Serafinko in Gdansk) ((Marta.Serafinko@thomsonreuters.com; +48 58 769 66 00;))