On Friday, Barclays (LON:BARC) adjusted its outlook on bpost SA (BPOST:BB) (OTC: BPOSY) shares, reducing the price target to EUR3.00 from EUR3.30, while maintaining an Equalweight rating on the stock. The revision follows the company's early July update on its financial guidance.
The firm recalibrated its projections based on the latest company guidance, which included details on new press contracts. The analysis suggested that achieving a break-even status for bpost's press business by 2027 could be challenging. The forecast anticipates substantial losses for the press segment in the years 2024, 2025, and 2026.
According to the Barclays update, the financial outlook for bpost indicates that there would likely be no underlying growth at the group level for the fiscal year 2025. The assessment takes into account the dynamics of the press contracts and their impact on the company's profitability and growth trajectory.
The price target adjustment reflects Barclays' evaluation of the potential financial performance of bpost in the coming years. The firm's analysis indicates that the postal service provider faces a tough road ahead, particularly within its press business division.
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