Deutsche Post Stock: Labor Disputes Impact Share Performance

Deutsche Post Group's stock displayed mixed performance in recent trading, with initial gains of 1.0% to €34.55 being offset by a subsequent decline to €34.09. This volatility comes amid significant operational changes, including new package shipping regulations set to take effect in January 2025 requiring accurate weight declarations for all shipments. Despite these challenges, the company demonstrated robust financial performance in the latest quarter, achieving revenue growth of 6.16% to reach €20.59 billion. Analysts maintain an optimistic outlook, setting an average price target of €40.64, suggesting substantial upside potential from current levels, though notably below the 52-week high of €45.67 recorded in January 2024.

Union Actions Threaten Operations

The company faces mounting pressure from labor relations as the DPVKOM union initiates a 24-hour strike action. The industrial action, primarily affecting locations in Eastern Germany, is projected to delay approximately 30,000 parcels and letters. Union representatives are demanding a minimum 8% wage increase and a €350 monthly base salary enhancement, citing the company's sustained positive economic performance as justification for their demands.