With hurdles already priced in, UBS ups Oesterreichische Post to 'neutral'

Oesterreichische Post AG

09/06/2022 10:22

** UBS ups Oesterreichische Post  POST.VI  to "neutral" from
"underperform" as it sees the difficulties for the Austrian
postal service now priced in the shares
    ** The broker remains cautious on the Vienna-based company's
outlook due to the inflation that has hit Austria hard - up 8.1%
year-on-year in May  urn:newsml:reuters.com:*:nS8N2VC0FU - and low consumer confidence
    ** It warns the current inflationary trend and the lack of
consumer confidence are likely to drive up costs and squeeze
consumer spending
    ** As a result, UBS forecasts a year-on-year EBIT decline of
18% to EUR 168 mln ($179.78 million), at the lower end of the
outlook range of EUR 161-205 mln
    ** However, the broker flags the price increases of 0-17% to
mail items and a salary hike of 4%, lower than UBS's 4.5%
forecast, could upset the cost inflation
    ** UBS adds there could be potential and room for growth for
Oesterreichische Post's parcel and logistics operations in
countries with low e-commerce penetration such as Austria and
Turkey
    ** Out of seven analysts that cover Oesterreichische Post,
​one rates the stock "buy", ​​four "hold" and two​ "strong sell"
or "sell"

($1 = 0.9345 euros)

 (Reporting by Tristan Chabba)
 ((Tristan.chabba@thomsonreuters.com))