In a report released today, Allen Klee from Maxim Group reiterated a Buy rating on Pitney Bowes (PBI), with a price target of $12. The company’s shares closed yesterday at $7.10, close to its 52-week low of $6.43.
Klee noted:
“Summary Our main takeaway from the government Task Force report on the U.S. Postal Service (USPS) is that it is a net positive for Pitney Bowes. We are positive on new products in the SMB segment that add shipping capabilities, which we believe will lessen the decline of this high cash flow business. Meetings with management highlighted actions to transition the company from focus on primarily mail-end markets, to more shipping-levered services, which we believe will cause EPS to trough in 2018. We believe management will either turn Software segment around or it will be sold. The company is outperforming the market in e-commerce growth, which should provide better earnings contribution over the next few years. Compelling valuation. PBI trades at less than 6x our 2019 EPS estimate of $1.22.”
According to TipRanks.com, Klee ‘s ranking currently consits of no stars on a 0-5 ranking scale, with an average return of -13.1% and a 27.3% success rate. Klee covers the Technology sector, focusing on stocks such as Sify Technologies Limited, Atlantic Tele-Network, and Net 1 Ueps.
Currently, the analyst consensus on Pitney Bowes is a Moderate Buy with an average price target of $14.
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Pitney Bowes’ market cap is currently $1.33B and has a P/E ratio of 4.97. The company has a Price to Book ratio of 5.30.
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Pitney Bowes, Inc. is a technology company which engages in the provision of products and solutions in the commerce industry. It offers information management, location intelligence, and customer engagement products and solutions and also provides shipping, mailing, fulfillment, returns and cross-border ecommerce products and solutions that enable the sending of parcels and packages across the globe. The company operates through the following segments: Small and Medium Business Solutions, Enterprise Business Solutions, and Digital Commerce Solutions. The Small and Medium Business Solutions segment provides equipment, software, supplies, and services that enable its customers to efficiently create physical and digital mail and evidence postage for the sending of mail, flats and parcels. The Enterprise Business Solutions segment includes equipment and services that enable large enterprises to process inbound and outbound mail. It includes the production mail operations and presort services operations. The Digital Commerce Solutions offers customer information management, location intelligence and customer engagement software, and shipping management and cross border ecommerce solutions for businesses of all sizes. Its solutions are delivered as traditional software licenses, enterprise platforms, software-as-a-service, and on-demand applications. Pitney Bowes was founded by Arthur H. Pitney and Walter Bowes on April 23, 1920 and is headquartered in Stamford, CT.
