Is Business Post, the parcel delivery group, about to hit the comeback trail?
Is Business Post, the parcel delivery group, about to hit the comeback trail? Broker Old Mutual Securities certainly thinks so.
After two years of strife, during which its share price has fallen from 500p to last night’s close of 243.5p, Old Mutual analyst Robin Byde believes the foundations for a turnround are finally in place.
He notes that a new chief executive has been appointed, its new office systems are finally working and confidence in the business has improved – the company recently signed an agreement with Federal Express to collect and deliver parcels for its international operations in the UK.
Although market conditions are tough for all parcel carriers at the moment, Mr Byde reckons overall shipment volumes are progressing year-on-year and business from technology companies is stabilising.
Mr Byde has a 321p target price for Business Post.
Copyright 2001 The Guardian.
Source: World Reporter (Trade Mark) – FT McCarthy.
THE GUARDIAN, 30th August 2001
