As we see it, although revenue in the Presort Services segment will likely decline in 1H:26, as comparisons ease and the company gains traction with reviving previously lost clients, we estimate that segment revenue will recover in 2H:26.
In the SendTech Solutions segment, we think new leadership and an easier comparison will result in a relatively smaller revenue decline in 2026 compared to our forecast for 2025.
With PBI continuing to reduce operating costs, lower interest costs and buy back stock, we increase our 2026 and 2027 EPS estimates by $0.02 each year to $1.38 and $1.47 respectively.
Our $17 price target is based on roughly 12x our 2027 EPS estimate of $1.45 (up from $1.47).
Our moderate risk rating factors in our expectation of additional earnings gains, healthy free cash flow generation and increasing dividends.
