Austrian Post: RBC trims rating, sees limited upside

Oesterreichische Post AG

25/03/2019 07:36

** RBC downgrades Austrian Post  POST.VI  to "sector
perform" from "outperform" on limited upside
    ** Says with stock up ~24% YTD, no longer sees sufficient
upside to its unchanged EUR 38 PT to support outperform
    ** RBC says introduction of non-priority mail should
facilitate some cost savings, but thinks modest earnings growth
supported by some one-off factors raises questions about what
further cost and pricing measures will help offset mail volume
decline from 2020
    ** Deutsche Post DHL  DPWGn.DE  and Austrian Post have
agreed a long-term partnership to make parcel deliveries in
Austria more efficient  urn:newsml:reuters.com:*:nL8N20Z1Z6
    ** "Company remarks suggest accretion from the Deutsche
Post-DHL deal may be greatest from 2021" - RBC
    ** Says co will lose some volumes to Amazon  AMZN.O , which
is establishing its own delivery network in Vienna in this
fast-growing market
    ** RBC forecasts broad stability in medium-term underlying
EPS, with company succeeding in offsetting mail volume decline
        

 ((geetha.panchaksharam.thomsonreuters.com@
mailto:geetha.panchaksharam@thomsonreuters.comreuters.net))