PBI - Hestia Capital Will Bring Major Changes To Pitney Bowes In 2024

2024-02-06 13:38:29 ET

Summary

• Pitney Bowes adds Bill Simon and Jill Sutton to the Board of Directors, giving activist investor Kurt Wolf control of the company.
• Shareholders should expect a permanent CEO appointment and an imminent sale of the Global Ecommerce segment.
• The sale of GEC could significantly increase Pitney Bowes' net income and unlock shareholder value.
• The company has a multitude of opportunities to increase net income and deleverage outside the sale of GEC.
• Even if Pitney Bowes were to give GEC away for $0 - I believe shares should trade up to at least $10.72 (a 164% premium to today's price) based on a 10x P/E ratio of the remaining company's estimated earnings.

Introduction

Pitney Bowes Inc. (PBI) is a shipping and mailing company that provides technology, logistics, and financial services (via the Pitney Bowes Bank) to its clients. PBI operates three segments - Global Ecommerce, Presort Services, and Sending Technology Solutions.

Readers can also view Seeking Alpha's company profile for PBI .

Recent News

Pitney Bowes shareholders were welcomed to fantastic news over the last week. On Wednesday, February 1st, it was announced after market close that PBI would be adding Bill Simon and Jill Sutton to the Board of Directors. As this was a negotiated cooperation agreement with Kurt Wolf of Hestia Capital it is clear that the board was fearful of Kurt running a second proxy battle. In short, Kurt Wolf just pulled off a rare coup where a company hands an activist control of the company....

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