In our view, total sales in 4Q:25 slipped 9.0% year over year to $469.8 million as we expect revenue declined in both the Presort Services and SendTech Solutions segments.
However, given our assumption of operating cost reductions, lower interest expenses and share repurchases, we estimate that 4Q:25 EPS rose 21% to $0.38.
As we see it, total revenue will decrease 3.4% in 2026 before flattish performance in 2027.
With PBI continuing to reduce operating costs, lower interest costs and buy back its shares, we estimate 2026 and 2027 EPS of $1.38 and $1.47, respectively, up from $1.29 expected in 2025.
Our $17 price target is based on approximately 12x our 2027 EPS estimate of $1.47.
Our moderate risk rating factors in our assumption of additional earnings gains, ample free cash flow generation and growing dividends.
