With cost pressure on the rise Berenberg sees mixed picture for European postal operators

Oesterreichische Post AG

13/12/2021 09:17

** Berenberg sees a mixed picture for the European postal
sector as the lack of mid-term visibility is likely to be only
partially offset by a boost from another COVID-19 infections
wave
    ** "We do believe the sector is in a better place now than
in 2019, with more parcels in the mix and less margin pressure,
but exciting ways to play this are limited for the moment," the
brokerage says
    ** Cost inflation has become the greatest threat for the
industry, yet these pressures should be manageable since fixed
postal networks are less likely to witness sustained cost
inflation than rivals relying on temporary labour, Berenberg
says  
    ** Price increases are expected to be more muted next year,
and cost concerns are coming to the fore, it adds
    ** The brokerage ups Britain's Royal Mail  RMG.L  to "buy"
from "hold" citing improved revenue mix, increasing automation,
and better-quality parcel business in the UK, as well as
near-all-time low valuation
    ** Berenberg also upgrades Oesterreichische Post  POST.VI  
to "hold" from "sell", citing limited short potential despite a
few improvements over the past 18 months
    ** The brokerage cuts Belgium's bpost  BPOST.BR  to "hold"
from "buy" saying its shares may be stuck in the doldrums longer
until execution improves and cost savings start to materialise

 (Reporting by Dagmarah Mackos and Ana Cantero)
 ((dagmarah.mackos@thomsonreuters.com;
ana.canteroros@thomsonreuters.com))