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RMG - Royal Mail News Story

459.5p 0.6  0.1%

Last Trade - 1:25pm

Large Cap
Market Cap £4.58bn
Enterprise Value £5.61bn
Revenue £11.35bn
Position in Universe 194th / 1809

BUZZ-Royal Mail: Rises after Deutsche Bank upgrades to 'buy'

Wed 20th January, 2021 9:28am
** Shares in British postal services co  RMG.L  up 3.7% at
404.3 pence after Deutsche Bank upgrades to "buy" from "hold"
    ** Brokerage says RMG's earnings have been materially
rebased upwards as there has been an acceleration of structural
shift towards e-commerce and parcels, adding that co can now
grow its earnings in the medium-term
    ** Although co is still in transformation and modernisation
mode, it is in a much better position to generate sufficient
free cash flow to restart modest amounts of dividend payment -
    ** Sees the framework agreement with the Communication
Workers Union as a positive with 2.7% pay increase from April
2020 and a further 1% from April 2021
    ** DB raises PT by 230p to 550p, the highest among all
analysts covering the stock; PT implies an upside of ~41% to
RMG's last close
    ** Up to Tuesday's close, stock up 15.5% YTD

 (Reporting By Geetha Panchaksharam)
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