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UBS has a “sell” rating and a target price of 450p on the newly-privatised postal firm. The broker is worried about the effects of Ofcom’s investigation into pre-sorted mail contracts, which make up 55 per cent of the UK letter market and generate £1.5bn in revenues.
Societe Generale has a “sell” rating on the power station operator and has cut its target price from 731.5p to 710p. The broker said new government guidelines on environment and energy aid are a material risk to Drax’s biomass conversion subsidies.