Royal Mail Share Price Jumps After Goldman Sachs Recommendation
Royal Mail shares (RMG) enjoyed a strong week last week. The shares opened the week at 440.60p and initially remained fairly static. However, on Thursday and Friday the price climbed as high as 465.90p before falling slightly to close the week at 462.90p, up 2.52% for the week and 13.67% for the month.
The jump came as Goldman Sachs issued a ‘Buy’ recommendation with a 575p price target. The bank said it believed that the Royal Mail offers “significant earnings growth potential” and expects earnings to grow over the coming years.
Nonetheless, investors are clearly not full of confidence. On Friday 62.22% of Royal Mail shares traded were sold while just 37.78% were bought. However, this may change over the coming week, especially if other brokers follow the example of Goldman Sachs and reassess the shares.