According to Barron’s Jack Hough, PBI shares could gain 60% over the next three years. Hough noted that since Pitney Bowes brought in new CEO Marc Lauterbach in December 2012, PBI shares have more than doubled.
Despite predictions of the demise of snail mail, Hough notes that PBI’s legacy postal businesses were still “hugely profitable” in the last quarter, while its non-postal businesses have “soaring” revenues.
Hough expects PBI revenue to remain flat this year. Incoming years, revenue growth will be modest. He predicts PBI’s EPS to jump from $1.88 last year, to $3 by 2017.
PBI earnings before interest and taxes (EBIT) for the most recent quarter were 35% of revenue. Hough notes that Apple’s (AAPL) latest EBIT margin was 30%.
On Friday, PBI stock closed at $26 per share.
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