European postal operators: Jefferies sees mail volume, cost pressures & Amazon threat

Oesterreichische Post AG

03/02/2020 09:47

** Jefferies says that European postal operators are
expected to face an ongoing challenging environment
    ** The brokerage cites deteriorating letter & parcel volume
trends, increasing competition from Amazon Logistics and rising
wage inflation
    ** The broker downgrades Austrian Post  POST.VI  to "hold"
from "buy" ahead of the re-launch of the company's financial
services offering and intensifying parcel investment program
    ** It cuts Bpost  BPOST.BR  to "underperform" from "hold" 
in view of ongoing uncertainty after recent management changes
and expected increasing mail volume pressure of up to 11%
    ** It says it sees Deutsche Post  DPWGn.DE  best positioned
among postal operators, with accelerating 20% EBIT growth, on a
growing contribution from recent self-help measures; maintains
"buy" on the stock
    ** The brokerage keeps "hold" on PostNL  PTNL.AS  and
"underperform" on Royal Mail  RMG.L  amid a growing threat from
Amazon Logistics


 ((marta.frackowiak@thomsonreuters.com))