Deutsche Post Stock: Shares Drop Amid Ongoing Strike Actions

Deutsche Post DHL Group experienced significant share price declines on Thursday in XETRA trading, with the stock falling 2.0 percent to €37.21 by afternoon trading. The day's trading saw the share touch a low of €37.00 after opening at €37.72, with trading volume exceeding 1 million shares. This downward movement positions the stock approximately 16.4 percent below its 52-week high of €43.32 reached on February 29, 2024, though still remaining about 11.2 percent above its 52-week low of €33.03 recorded in January 2025. The market decline comes amid operational challenges for the logistics giant, as approximately 4,500 employees participated in warning strikes at delivery hubs nationwide, resulting in roughly five percent of daily mail and package deliveries being delayed on Thursday, following a more intensive strike day on Wednesday when reportedly one in four packages couldn't be delivered.

Wage Negotiations Intensify Pressure

The labor dispute continues to escalate as Verdi union demands a seven percent wage increase in a 12-month collective agreement for the company's 170,000 employees. Deutsche Post has countered with an offer of a 1.8 percent initial increase followed by an additional 2.0 percent increase in a 27-month contract. The fourth round of negotiations is scheduled for Monday. Despite current operational challenges, analysts maintain cautious optimism about the company's prospects, setting an average price target of €40.50 for the stock. Financial projections for 2024 anticipate earnings of €2.81 per share, with experts forecasting a modest dividend increase to €1.86, slightly up from the previous year's €1.85.