Shares of Royal Mail Drop Four Percent

    Photo by Cristiano Betta/Flickr

    This morning, Royal Mail shares were down by over four percent after Jefferies slash its target price on the company.

    Analysts at Jefferies reemphasised their “underperform” rating on the group. However, they reduced the share price target from 330p to 300p. The stock was down by 4.71 percent at 421.1p at the time of writing.

    Royal Mail has had a rough last few months, with the threat of strikes during the Christmas holidays looming over management.

    Workers have warned for industrial action due to the closure of its final salary pension scheme which has been closed to new members since 2008. However, it remains open to future accrual, which Royal Mail states will cost it £1.3bn.

    However, last month, some good news was revealed for investors when the company revealed a boost from the taxman amounting to £106m that is “related to the decision to close the [Royal Mail Pension Plan] RMPP to future accrual after 31 March 2018.”