Barclays hikes Royal Mail price target on growth expectations

Barclays hiked its price target on Royal Mail to 640p from 550p on Thursday, citing expectations of growth in FY23.

The bank said it expects "solid" Christmas trading, as indicated by the recent ‘Barclays UK Spend Trends’ discretionary retail spend signal.

"UK domestic volumes continue to be supported by antigen testing kits, which have grown on the back of the emergence of the Omicron variant," it said.

Barclays kept its rating on Royal Mail at ‘overweight’.