BUZZ-Royal Mail: Brokers cut estimates, target price

** Royal Mail (LSE: RMG.L - news) -6.2 pct, second biggest loser on FTSE 100

** Co on Tuesday reiterates expectations for the drop in letter volumes to come in at the higher end of its previously announced 4-6 pct range for 2018 and 2019 - and could even be outside the range

** JPMorgan (LSE: JPIU.L - news) analyst remains cautious and believes letter trends could still deteriorate from here, cuts EPS forecasts c.3 pct

** JPMorgan cuts TP to 537p from 561p

** Bernstein updates EPS forecast to reflect slightly higher cost in the medium-term, but maintains long-term outlook for the company

** "The cost reduction initiatives RMG is trialling in the UK are unlikely to start delivering benefits on a substantial scale for a couple of years, while the mix shift from letters to parcels continues to put pressure on the UK cost base," Bernstein analysts say

** Broker says margins will come under pressure at European parcels business GLS due to tightening labour markets, cuts TP to 550p from 590p (Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)