Deutsche Post Stock: Shares Rise Despite Extended Strikes

Deutsche Post, now known as DHL Group, saw significant stock gains on Monday, with shares climbing 2.2% to €38.53 on the XETRA exchange. The stock reached a daily high of €38.79 after opening at €37.45, showing remarkable resilience despite ongoing labor disputes. This positive trajectory is particularly noteworthy as the company faces extended warning strikes by the Verdi union, which have caused substantial delivery delays across Germany. According to company reports, more than 10% of nationwide mail and parcel deliveries were affected on Friday and Saturday, with approximately 7,700 employees walking off the job on Friday followed by another 7,500 on Saturday. The most significant impact occurred on Wednesday when a quarter of the total parcel volume could not be processed as scheduled. Despite these challenges, the stock has recovered approximately 14.3% from its 52-week low of €33.03 recorded in mid-January 2025, though it remains 11.6% below its March 2024 high of €42.99.

Analyst Projections and Negotiations

Financial analysts maintain a positive outlook for DHL Group, forecasting earnings of €2.81 per share for 2024 and setting an average price target of €40.50, suggesting additional upward potential of about 5%. The company is expected to pay a dividend of €1.86 per share for the current year, slightly higher than the previous year's €1.85. Meanwhile, the fourth round of wage negotiations between Deutsche Post and Verdi has commenced, with the union expecting an improved offer following the widespread strikes. The union is demanding a 7% wage increase with a twelve-month term for approximately 170,000 mail carriers and logistics employees, while the company has offered increases of 1.8% followed by 2.0% over a 27-month period.