Royal Mail Group PLC tipped to cap renaissance with FTSE 100 promotion
The postie’s share price has risen three-fold over the past twelve months giving the group a market value of 5.2bn.
Royal Mail Group PLC () is set to cement its resurgence in early June when it is promoted again to the FTSE 100, according to wealth manager Hargreaves Lansdown.
While nothing is guaranteed, Hargreaves says the parcels and letters group looks to be a shoe-in for the next quarterly reshuffle
The share price has risen three-fold over the past twelve months giving the group a market value of 5.2bn.
Annual results on Thursday 20 May will show a doubling of profits to £700mln following a string of upgrades as parcel deliveries have boomed during the lockdown.
A resurgence in letter writing has been an added bonus, says Hargreaves’ Susannah Streeter but the problems of prolonged under-investment remain and significantly more capital expenditure will be needed after years of underfunding.
ITV () might also sneak in reckons Streeter, especially as marketing spend is ramping up once again as vaccine rollouts fuel confidence among brands.
“There is also hope of a rebound in fortunes for its Studios business, where it produces content for others, especially with the streaming wars seeing little sign of de-escalating.”
The FTSE 250 is set for more changes than the big board, especially as the stream of new floats has continued unabashed.
Potential promotees include () – the former Premier Oil – MoonPig (), TrustPilot (), () and 4Imprint Group ().
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