European postal operators: COVID-19 likely to trigger accelerated e-substitution - Jefferies

Oesterreichische Post AG

15/06/2020 07:25

** Jefferies says the coronavirus pandemic hits direct mail
and will most likely trigger accelerated e-substitution in the
postal sector
    ** The brokerage expects parcel volume growth of 20% in Q2,
supported by increased e-commerce activity during the
coronavirus-related lockdowns
    ** It says this growth will be offset by a 17% slump in mail
volume, driven by a 50% drop in advertising mail, and a 5%
increase in costs related to lockdown measures
    ** Jefferies cuts Austrian Post  POST.VI  to "underperform"
from "hold", saying the stock's premium valuation vs peers looks
unsustainable as it expects the company's dividend to be cut by
40%
    ** Jefferies upgrades Belgian Bpost  BPOST.BR  to "hold"
from "underperform", citing valuation support ahead of a
strategy update and expecting the company to reach 30% in parcel
volume growth for Q2 
    ** The brokerage confirms Deutsche Post DHL  DPWGn.DE  as
its top-pick in the sector

 ((flora.gomez@thomsonreuters.com))