Royal Mail (RMG) Share Price LSE Monday 3 November 2014
Last week saw a steady drop in Royal Mail’s (RMG) share price from a high of 459.50p on Monday to a low of 429.30p on Thursday before closing the week down 4.89% at 441.20p. Nonetheless Royal Mail shares closed October up 8.93% for the month.
The Royal Mail made headlines several times last week for a variety of reason. It announced that it is investing £130 million over five years to improve parcel tracking and delivery capabilities. It also announced the creation of 470 new jobs due to a new parcel sorting centre. However, there were also negative headlines such as its refusal to deliver mail to a Victorian street with uneven paving due to health and safety fears.
As a result it is no surprise that there is some division amongst brokers as to the direction to take with these shares. Berenberg is the only broker to recommend buying while Credit Suisse has assessed the shares as underperforming and JP Morgan Cazenove assessed them as overweight.