KEPLER CHEUVREUX CUTS POSTNL STOCK RATING TO REDUCE AMID POLITICAL UNCERTAINTY

Published 06/06/2025, 12:16
KEPLER CHEUVREUX CUTS POSTNL STOCK RATING TO REDUCE AMID POLITICAL UNCERTAINTY

On Friday, Kepler Cheuvreux downgraded PostNL (AS:PTNL) stock from Hold to Reduce, citing political uncertainty in the Netherlands following the collapse of the Dutch government. The firm adjusted its price target for PostNL to €0.80 from the previous €1.00.

The analyst at Kepler Cheuvreux explained that the absence of a stable government is likely to delay any changes to the Universal Service Obligation (USO (NYSE:USO)), which impacts PostNL. Short-term relief measures that the previous administration might have considered are also expected to be postponed.

Kepler Cheuvreux noted that, while they still anticipate some regulatory relief for PostNL in the future, the likelihood of timely implementation in 2026 is low. This led the firm to reduce its FY 2026 EBIT estimate for PostNL by 12%, placing it 5% below consensus estimates.

The downgrade reflects concerns over the company’s near-term outlook amid the political situation. The lack of immediate legislative action is seen as a hindrance to PostNL’s potential regulatory relief efforts.

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