The Royal Mail share price is up 2.22% as investors shrug off the potential for a strike action that will...
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Royal Mail
Royal Mail is a British postal service and courier company that delivers mail and parcels in the UK and globally.
The company was established in 1516 as a departed of the Government of England and operated as a state department until its 2013 floatation on the London Stock Exchange.
The UK government had a 30% stake in the public company but later sold its entire stake in 2015, marking the end of an era. Royal Mail had been a state department for 499 years.
In recent years, the postal company has struggled amid falling revenues, which saw its shares fell from their all-time highs in May 2018 to their all-time lows in March 2020. However, the coronavirus pandemic and the resulting lockdown measures breathed new life into the company, which has seen its share price soar.
As a result, Royal Mail shares rallied almost to their all-time highs above 600p in June 2021 but have fallen since then.
Still, analysts at JPMorgan are incredibly bullish on the firm and have a price target of 804p. The investment bank believes that the Royal Mail will do much better than its competitors over time. However, only time will tell whether the shares shall rally higher or keep falling. JPMorgan pointed out that the firm has less wage pressure than some of its competitors. Also, its tracked parcel service could outperform in the future.
