Brean Capital Cuts Price Target on Pitney-Bowes (PBI) Following 1Q Miss
Get Alerts PBI Hot Sheet
Rating Summary:
5 Buy, 4 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 10 | New: 14
Join SI Premium – FREE
Brean Capital maintained a Buy rating on Pitney Bowes (NYSE: PBI), and cut the price target to $24.00 (from $25.00), following the company's 1Q earnings report. PBI reported revenue and EPS of $845M and $0.34, missing the Street's estimates of $870M and $0.40. The Company expects an incremental marketing expense in the Jun Q of ~$0.03. Additionally, Jun Q ERP is expected to be higher than Mar Q EPS impact of ~$0.01.
Analyst Ananda Baruah commented, "We believe there is good value here as PBI had a very solid operational Q ex-software (Figure 1). That said, a very real downside of PBI not providing quarterly guidance is what happened this Q as Street was at $0.40, while we believe PBI expected $0.37 - $0.39 excluding the software softness. Paradoxically, we believe the biggest hurdle to the stock could now be PBI maintaining its '16 EPS guidance of $1.80 - $2.00 (Street at $1.83 into the call). The year is very back-end loaded, and we believe PBI's true target range is likely now $1.80 - $1.85 with the 'base' biz at ~$1.65, with ERP potential ~$0.10, BorderFree synergies ~$0.05, and Software fix potential ~ $0.05. If accurate, that doesn't leave PBI with much wiggle room in the context of the current guide. We'd love to see them reduce the range, providing comfort to investors in its achievability, and thus helping the P/E. Our $24 TP (from $25) is 12x (PBI median) our '17E EPS of $2.00."
For an analyst ratings summary and ratings history on Pitney Bowes click here. For more ratings news on Pitney Bowes click here.
Shares of Pitney Bowes closed at $18.93 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Citi Upgrades United Microelectronics Corp (2303:TT) (UMC) to Buy 'with limited downside'
- HSBC Downgrades Anglo American Platinum Limited (AMS:SJ) (ANGPY) to Reduce
- Vital Farms (VITL) PT Raised to $32 at Lake Street Capital Markets
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT ChangeRelated Entities
Earnings, Brean CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!