Goldman Maintains Sell On Pitney Bowes Inc. (PBI)

Goldman Sachs is maintaining its Sell rating and $21 price target on shares of Pitney Bowes Inc. PBI. In a note to clients, Goldman writes, "Despite better 4Q operating results, the growth profile for the PBI model remains stalled into 2011. While we acknowledge better cost benefits from recent restructuring efforts, new investments and the continued drags from the SMB segment will likely limit operating EPS growth prospects, with the company's initial EPS guidance range suggesting a decline of 4% to growth of 5% yoy in 2011. From a revenue growth perspective, relative to our coverage PBI remains among the lowest growth models and among the last models to benefit from a cyclical recovery. That said, we acknowledge a second quarter of improved sales activity, but believe that the company's overall growth profile will remain challenged due to lower financing and rental revenues. While the 5.9% dividend yield, FCF and share buyback should provide support for the shares, we see few compelling reasons to own the shares given its continued muted growth profile in 2011." Shares of PBI gained 41 cents yesterday to close at $25.17, a gain of 1.66%.