Royal Mail upgrades forecasts

Royal Mail hit a fresh 2.5 year high after lifting revenue guidance by £900 million YoY.

Uptrend 4

 
Royal Mail has surged higher this afternoon after upgrading FY revenue forecasts thanks to better than expected letter volume trends and revenue trends. 

Full year revenue 2020/1 is now expected to be over £900 million higher year on year.

Adjusted operating profit is expected to be £700 million. 

Furthermore, Royal Mail is due to complete a restructuring which should now cost £90 million instead of £140 million. 

The stock trades at at 2.5 year high after being a clear beneficiary of the pandemic. 

The weekly chart shows an established bullish trend, although the RSI is firmly in overbought territory so some consolidation could be on the cards. 

Resistance is seen at 490 ahead of 530 a level from mid 2018.

Support can be seen at 445 prior to 370 a resistance turned support from 2018.

Build your confidence risk free

More from Equities

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.