Royal Mail worth 700p a share, says JP Morgan Cazenove

[TrueBlueTerrier]

http://www.theguardian.com/business/mar ... -jp-morgan" onclick="window.open(this.href);return false;

Bank's analysts value business at up to £7bn compared to £3.3bn flotation price

JP Morgan told ministers before the flotation that the company could be worth £10bn rather than the £3.3bn sale price. Now analysts at JP Morgan Cazenove, while not quite getting as high as £10bn, have issued a buy note valuing the business at £7bn. It said:

We are initiating coverage on Royal Mail Group with an overweight rating and a price target of 700p implying 20% upside potential, rooted in projected 200 basis points of underlying margin gains over the next five years.

This implies a 'slow-burn' equity story contingent upon successful execution of complex restructuring, but we adopt a bullish stance in light of a supportive macroeconomic backdrop, gearing to secular e-commerce growth as the UK's number one parcel delivery provider, a solid balance sheet and potential disposals upside.

In a falling market Royal Mail is up 1p at 588p. On Monday the company announced a management shake up.

[chooch]

'successful execution of complex restructuring' .. pmsl

[Glenno]

In a falling market Royal Mail is up 1p at 588p. On Monday the company announced a management shake up.
Pray tell me more...

[TrueBlueTerrier]

In a falling market Royal Mail is up 1p at 588p. On Monday the company announced a management shake up.
Pray tell me more...

http://www.royalmailchat.co.uk/communit ... 18&t=59433" onclick="window.open(this.href);return false; Higson out!!!