Stamps.com (STMP) PT Lifted to $75 at Northland Capital on Deals

Northland Capital Markets maintained an Outperform rating on Stamps.com Inc. (NASDAQ: STMP) and increase price target to $75 (from $65) after discussions show that the acquisition of ShipStation and ShipWorks could potentially be more profitable than originally estimated.

Northland analyst Tim Klasell comments, "The acquisitions of ShipStation and ShipWorks could potentially be more profitable than we originally estimated, helping us to increase our 2015 and 2016 estimates. Additionally, we calculated non-core/promotional business is now down to less than a couple million dollars per year, as a result, this should not be as much of a headwind (we calculate it subtracted a point of growth from that line last year).

He added, "We remain positive on the proposed Endicia acquisition given the potential financial and strategic impact and look forward to an update when the company reports. The Newell Rubbermaid filings indicate that Endicia growth in 2014 was in line with what was mentioned on the March call, but we note this was a slow down from 2013. We are not reading too much into this since last year Endicia announced its intent to divest the business, which certainly caused some concern both internally and externally at the company, while Stamps was strengthening its business via the acquisitions of ShipStation and ShipWorks."

For an analyst ratings summary and ratings history on Stamps.com click here. For more ratings news on Stamps.com click here.

Shares of Stamps.com closed at $61.50 yesterday.

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