Pitney Bowes: Margin Tailwinds Are A Temporary Catalyst (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Pitney Bowes' new activist board and management are creating a special situation in the stock.
• Margin improvements are anticipated as Pitney Bowes exits its unprofitable Global Ecommerce segment and continues cost-saving measures in SendTech Solutions and Presort Services.
• There is a sharp earnings upgrade in the stock after a long time. Coupled with a large 1-yr fwd PE discount vs comparables, this makes PBI a candidate for buys.
• Relative to the S&P500, the technicals look favorable for outperformance vs the index over the next few quarters.
• I still see PBI as a temporary bullish play, as the company is still plagued by weak revenue growth drivers due to its exposure to a secularly declining industry with high competition.

Read the full article here.