Royal Mail share price plunges
Shares at Royal Mail dropped more than 4pc to £3.21 in early morning trade, briefly sinking below the £3.30 price at which it floated in 2013, reports The Telegraph.
The FTSE 100 company has now fallen around 30pc since it warned investors last week that full-year profits would be lower than expected amid declining letter volumes and data protection concerns.
Analysts at RBC Capital Markets, HSBC and JP Morgan have cut recommendations on the stock.
RBC, who downgraded the stock from sector perform to underperform said Royal Mail’s shares did not fully reflect the “amplified profit risks from higher-than-expected costs”.
This morning HSBC cut the target price on Royal Mail shares to 379p from 552p, while RBC reduced it to 315p and Bernstein to 350p.
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