Shares in the Royal Mail rallied after they were moved to overweight from neutral a day after the government sold a 15% stake in the business.
The demise of rival Whistl will help to increase volumes at the Royal Mail, however it is not all plain sailing.
‘While uncertainty persists with respect to parcel market headwinds (overcapacity) and postal market uncertainty (competition, regulation), the withdrawal of PNL from the direct delivery market leaves us with a more compelling Royal Mail valuation’ JP Morgan said in a note.
JP Morgan have a 615p price target, shares trade 505.5p +2.52%
