Stamps.com gets target boost before earnings
- B. Riley maintains a Neutral rating on Stamps.com (NASDAQ:STMP) and raises the price target from $50 to $62.50.
- Analyst Zach Cummins says the recent Universal Postal Union decision eases some near-term concerns.
- Cummins raises his FY19 revenue estimate from $539.5M to $544.4M and FY20 from $499.5M to $504.6M. Consensus estimates have $540.6M for FY19 and $525.2M for FY20.
- The analyst remains cautious on future numbers because it's "still believed that the USPS will meaningfully reduce margins for resellers in FY20 and FY21."
- STMP shares are flat pre-market at $72.85. The company has an Outperform average Sell Side rating. Stamps.com is expected to report earnings on November 7.