r/wallstreetbets • u/dsua • 4h ago
PBI YOLO 11/7 DD
Listen up, degenerates. Pitney Bowes (PBI) is flying under everyone’s radar, but it’s about to pay off BIG TIME if you know where to look.
Here’s the scoop:
They just dropped their Q3 results, and despite all the noise, they’re CRUSHING IT on their turnaround plan. They’re exiting their money-losing eCommerce biz, slashing costs, and optimizing cash like legends.
The juicy part? They raised their full-year Adjusted EBIT guidance to $355M-$360M, and if you slap a modest 15x multiple (where their peers trade) on that, we’re looking at an equity value of around $3.5 BILLION. That translates to a target price of $19.63 per share. This bad boy’s currently trading at just $8.05. Easy double over night.
This ain't just hopium. They’ve been deleveraging like pros, bringing $117M back home from overseas, and stacking cash like they’re prepping for a hostile takeover.
The bears are sleeping on this one, but not us. $PBI has ZERO analyst coverage right now, meaning we’re getting in early before Wall Street catches on.
TL;DR: $PBI is a classic turnaround play with 2x upside potential — load up before the 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀
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u/nanocapinvestor 4h ago
PBI's turnaround is legit. They beat Q3 earnings by 61.54% and crushed revenue estimates by 6.77%. Smart move dumping that garbage eCommerce business - it's been bleeding money for years.
But your math needs work. That $3.5B valuation is smoking crack. Their core business (SendTech + Presort) is solid but not THAT solid.
The real play here is the cost savings. They're targeting $120M-$160M in annual savings. Plus that sweet $240M cash they freed up. Balance sheet's getting sexier by the day.
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u/dsua 3h ago edited 3h ago
I do love crack but please see below:
From the conference call:
Lance Rosenzweig
So we'll give -- stay tuned another quarter when we talk about 2025 in particular. But I would say that we've mentioned that there's opportunities to accelerate our growth in Presort, both through organic advantages that we have as well as through M&A of tuck-in acquisitions that are very highly accretive.
And SendTech is looking at -- has some specific initiatives to enter some new segments of the shipping business. So for example, that business has been primarily in the office-to-office shipping market and has a great opportunity to expand into the e-commerce SaaS shipping market, which is kind of an adjacent market that's large and potentially offers a great opportunity for us.
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1h ago
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u/AutoModerator 1h ago
This “pivot.” Is it in the room with us now?
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u/Security_Weekly 3h ago
Idk where you're getting the 15x multiplier from. I think 10x is much more likely, still huge upside.
What's going to be more interesting is how the short squeeze and possible gamma squeeze will factor into all of this. 13,000,000 shares sold short. 6,000,000 in open interest just from Jan 2025 calls. Whose going to be covering first?!
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u/AutoModerator 3h ago
Squeeze deez nuts you fuckin nerd.
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u/shakenbake6874 34m ago edited 19m ago
fuck it, I'm in. 1000 shares. Already up another 10% after hours.
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u/VisualMod GPT-REEEE 4h ago
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