August 23, 2014

Royal Mail shares fall on sell rating by analyst

Shares in Royal Mail fell by 1.9pc to 561p on Tuesday following the issue of a sell rating by an analyst. Robin Byde of Cantor issued a sell rating on Royal Mail shares as he began his coverage on the stock despite the recent better than expected results posted by Royal Mail.

Byde set a target price of 500p on Royal Mail shares, claiming that the company needs to invest ‘heavily’ in automation in order to produce better efficiency and margins. He also expressed concern about the level of competition in the packets and parcels market, of which Royal Mail believes is its high-growth area.

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