European postal operators: High operating leverage in mail largest risk - Barclays

Oesterreichische Post AG

21/05/2020 09:25

** Barclays says that high operating leverage in mail
remains the largest risk for European postal operators
    ** Further e-commerce growth will require improvement in the
distribution network to achieve better profitability, the broker
adds
    ** Should social distancing remain for an extended period of
time, the brokerage says it believes digitalization will trigger
greater e-commerce penetration on the one hand and higher letter
e-substitution on the other
    ** Barclays says it believes the risk remains on the
downside given the difference in margins between e-commerce and
mail
    ** It cuts Austrian Post  POST.VI  to "underweight" from
"equal-weight" citing the small year-to-date stock price swing
and the highest EBIT exposure to mail business across the sector
    ** The broker says that Bpost  BPOST.BR  remains its
long-term preferred name, but it is aware of short-term
headwinds


 ((marta.frackowiak@thomsonreuters.com))