In a report released today, Tim Klasell from Northland Securities maintained a Hold rating on Stampscom (STMP), with a price target of $80. The company’s shares closed yesterday at $83.39, close to its 52-week low of $75.61.
Klasell commented:
“We also note the higher tax rate of 40%, up from the prior 30%, as portions of executive compensation are no longer deductible, which with a lower income level, pushes the tax rate to the highest on our list. Reseller Arrangements: Stamps derived a substantial portion of its services revenues from rev shares with the resellers (we estimate $66mn, or 50% in Q1), going to 45% on our new model for Q3 in a very rough cut. The challenge in estimating the impact from new arrangement is: 1) the USPS has just started the process and visibility into the magnitude is very limited; 2) resellers (and ecommerce shippers) will probably switch some unknown volume to other carriers as the pricing differentials shift; and 3) the timing is very much up in the air.”
According to TipRanks.com, Klasell is a 5-star analyst with an average return of 21.1% and a 70.4% success rate. Klasell covers the Technology sector, focusing on stocks such as ServiceSource International Inc, Tyler Technologies, and Zix Corporation.
Currently, the analyst consensus on Stampscom is a Hold with an average price target of $76.60, implying a -8.1% downside from current levels. In a report released today, B.Riley FBR also downgraded the stock to Hold with a $45 price target.
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The company has a one-year high of $285.75 and a one-year low of $75.61. Currently, Stampscom has an average volume of 1.17M.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is neutral on the stock.
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Stamps.com, Inc. engages in the provision of Internet-based mailing and shipping solutions. It enables small businesses, enterprises, and online retailers to print U.S. Postal Service-approved postage. It operates under following segments: Stamps.com and MetaPack.
