Stamps.com +2.5% upgraded on risk/reward improvement

|About: Stamps.com Inc. (STMP)|By:, SA News Editor

Maxim upgrades Stamps.com (NASDAQ:STMP) from Hold to Buy with a $98 price target (25% upside) saying the recent pullback improved the risk/reward balance.

STMP shares have dropped 52% in the past quarter, and the firm thinks the valuation now more than compensates for a lower earnings run rate and likely slower growth over the next two years.

Maxim thinks any wins of new carriers isn't priced into the stock and could provide an upside surprise to long-term growth.

STMP shares are up 2.5% pre-market to $80.29.

Previously: Stamps.com CFO call leaves Maxim concerned (March 14)

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