European parcels: No signs of relief - Berenberg

Oesterreichische Post AG

04/02/2020 07:48

** Berenberg the European postal sector in unlikely to see
any "relief" in the near term after already tough 18 months
    ** The brokerage notes letter volume declines continue and
returns-on-capital keep falling due to parcel growth
    ** It cuts Royal Mail  RMG.L  to "sell" from "hold" as it
says it thinks the company is in a difficult position to deal
with the mentioned trends
    ** Reiterates Deutsche Post  DPWGn.DE  as its "top pick"
with a "buy" rating saying it benefits from limited postal
exposure, alongside profit growth and self-help opportunities
elsewhere
    ** Berenberg says it still likes UPS  UPS.N  and PostNL
 PTNL.AS , rates "buy" on both, and continues to think that
Austrian Post  POST.VI  ("sell") does not deserve its premium
valuation 




 ((joanna.wodzicka@tr.com))