Deutsche Bank closed its Catalyst Call Sell Idea on Royal Mail (OTCPK:ROYMF).
Analyst Andy Chu and team think that a number of catalysts that the firm identified have now played out, including difficult labor wage negotiations with the CWU union, with a deal yet to be agreed and full-year results. A slowdown in European consumer spending is also already in the books as called for.
"The shares have declined by 19% since we initiated our catalyst call and this compares to the FTSE 100 which is down 6% over the same period."
Deutsche Bank first initiated the bearish stance back on Royal Mail on March 29 with a double downgrade to Sell from Buy and fired off the catalyst call for a short-term price move.