Procore stock price target raised to $90 from Goldman Sachs on stabilizing growth
Investing.com - Goldman Sachs initiated coverage on Pitney Bowes (NYSE:PBI) with a Neutral rating and set a price target of $11.00. The stock currently trades at $9.88, representing potential upside of 11% to Goldman’s target, though significantly below the highest analyst target of $17.
The global provider of mailing, shipping and logistics solutions has successfully executed a multi-year transformation that significantly improved profitability, according to Goldman Sachs. This transformation included exiting the unprofitable Global Ecommerce business and implementing a cost savings program of approximately $250 million.
These strategic moves have boosted Pitney Bowes’ EBITDA margins from mid-teens in 2023 to high-20s currently. The company has also reduced leverage and shifted its capital allocation priorities toward share buybacks and dividend increases. InvestingPro data shows impressive gross profit margins of 53.78% and a remarkable 55-year streak of consecutive dividend payments, with a current yield of 3.64%.
Goldman Sachs notes that Pitney Bowes is navigating secular headwinds in the mailing industry, with U.S. mail volumes declining 3-4% annually on average over the past decade. This decline has particularly pressured the company’s SendTech business segment.
The investment bank believes Pitney Bowes can achieve an inflection to low-single-digit revenue growth over the medium term, following an expected mid-single-digit decline in 2025, through initiatives including product investments in mail meters, sales force restructuring, expansion of non-captive financing, and potential share gains in its Pre-sort business. According to InvestingPro analysis, the stock appears slightly overvalued at current levels, trading at a P/E of 23.39 but with a notably low PEG ratio of 0.19, suggesting attractive valuation relative to growth expectations. Discover 10+ more exclusive ProTips and access the comprehensive Pro Research Report covering what really matters about Pitney Bowes.
In other recent news, Pitney Bowes Inc . reported its third-quarter earnings for 2025, which showed a slight miss on both earnings per share (EPS) and revenue forecasts. The company announced an EPS of $0.31, just under the forecasted $0.32. Revenue also came in lower than expected at $459.68 million, missing the anticipated $467.45 million. These results are part of the latest developments concerning the company. The earnings announcement was followed by a decline in Pitney Bowes’ stock during trading hours. Analysts and investors are closely watching the company’s performance in light of these figures. The company’s financial results continue to be a significant focus for stakeholders.
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