Royal Mail shares are up nearly 4 percent this morning, after upgrades from multiple brokers.

Cantor Fitzgerald reiterated its buy rating on the stock, raising its forecast from 530p to 550p. Cantor’s Robin Byde called Royal Mail’s progress “encouraging”, continuing:

“Royal Mail faces potentially tough wage and pension negotiations this year but the risks are probably overstated. The stock is good value, trading on a calendar 2016 estimated PE discount of 16% to the sector.”

RBC Capital Markets also raised its rating to “sector-perform” from “underperform”. The upgrades come after Royal Mail revealed better than expected results in today’s tough market, showing restructuring and cost-saving measures beginning to take effect.

Royal Mail (LON:RMG) shares are currently up 3.37 percent at 508.50 (1103GMT).

23/05/2016