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Pitney Bowes Inc (NYSE:PBI) is well-liked by analysts, registering a "Bullish" 8.1/10 Starmine Equity Summary Score. (The Starmine Equity Summary Score is an accuracy-weighted sentiment derived from the ratings of independent research providers. It uses the past relative accuracy of the providers in determining the emphasis placed on any individual opinion.)

Company Description (from Yahoo! Finance)

Pitney Bowes Inc. provides software, hardware, and services to enable physical and digital communications. It also offers a suite of equipment, supplies, software, services, and solutions for managing and integrating physical and digital communication channels.

Why Analysts Are Hot On Pitney Bowes

1: Discounted P/E

Pitney Bowes is trading at a significant discount to historical P/E ratios. While it traded at a near 20 P/E as recently as 2011, the P/E today is a dirt cheap 4.2.

(click to enlarge. Source: Ycharts.com)

2: Strong Dividend

Pitney Bowes is a Dividend Aristocrat, meaning it has increased dividend payouts for 25 consecutive years. At current prices, the stock is yielding a phenomenal 10.52% dividend yield. This provides investors with a lot of upside through a DRIP (Dividend Reinvestment Plan).

(click to enlarge. source: YCharts.com)

3: Downside Priced In

Analyst price targets on PBI range from $16 to $20, with a mean of $17.80. This represents a significant (25%) mean upside. With the fat dividend yield, the upside is phenomenal.

4: High Net Margin

PBI has a net margin of 12.6% over the four trailing quarters. This is the highest margin in its peer group (the Office Equipment Industry).

5: Innovation

While Pitney Bowes was classically involved in the production of postage meters and related products, they are quickly becoming a new tech giant, offering comprehensive communications solutions with digital software-as-a-service [SAS] offerings.

6: Poised for a Breakout When Recovery Kicks Off

Small business creation has been lagging lately, but in the long term, it will come back. Pitney Bowes is well positioned for this:

Analyst Shannon Cross, founder of Cross Research, said Pitney Bowes' major problem is the economy, noting that a big part of Pitney Bowes business is centered on small business creation, which has been lacking. 'They're managing as best they can,' she said.

(click to enlarge)

Disclaimer: I am an individual investor, not a licensed investment advisor or broker dealer. Investors are cautioned to perform their own due diligence. All information contained within this report is presented as-is and has been derived from public sources & management. Always contact a financial professional before making any major financial decisions. All investments have an inherent degree of risk. The future is uncertain, and actual results may be materially different from those expected. Past performance is no guarantee of future results. All views expressed herein are my own, and cannot be interpreted as the views of my employer(s) or any organizations I am affiliated with. Presentation of information does not necessarily constitute a recommendation to buy or sell. Never make any investment without conducting your own research and reading multiple points of view.

Source: 6 Reasons Analysts Love This Beaten Down Dividend Aristocrat