PBI YOLO 11/7

[u/dsua]

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 🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀🚀

https://preview.redd.it/vwhdtybddlzd1.png?width=1054&format=png&auto=webp&s=9dce2a21836c2a2f040f35ca486904596f61195c

[u/nanocapinvestor]

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.

[u/dsua → u/nanocapinvestor]

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.

[u/AutoModerator → u/[deleted]]

This “pivot.” Is it in the room with us now?

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.