Brean Murray Carret Lowers Price Target on Pitney Bowes (PBI)

Brean Murray Carret & Co. is out with a research report this morning, where it reiterates its Buy rating on Pitney Bowes Inc. PBI; it also lowered its price target to $28.00, from $30.00. The BMC analysts cited the company’s most recent earnings report, which was weak on the both the top and bottom lines; they were disappointed in the results even more because “PBI is now executing crisply on the cost cuts we’ve been pointing to/waiting for as our Buy catalyst.” They added that they would like to see PBI get more aggressive on its cost savings and buy back goals given that the company is generating a lot of cash. The analysts cited three key questions surrounding the stock: 1) can there be a catalyst for the stock, 2) is the revenue hiccup temporary, and 3) is there something more structural going on with the PBI revenue opportunity, whether it be from the “traditional” secular areas that bears point to (i.e., internet) or even if just a fundamental shift in how business is done (are lease extensions akin to a “new or longer norm”, are we entering an environment where folks will do with fewer meters, etc?”