PBI - Pitney Bowes continues to rise amid increased activist attention

Pitney Bowes ( NYSE: PBI ) stock rose sharply on Monday, extending a notable gain on Friday, amid more vocal activist investor attention.

Hestia Capital Partners announced its intention to file a preliminary proxy statement and accompanying universal proxy card to nominate directors on Friday during an interview with Yahoo Finance .

Hestia CIO Kurtis J. Wolf told the outlet on Friday that his firm sees significant upside for the stock if certain key changes are made, comparing the name to GameStop ( GME ) in 2020. Hestia had previously invested in GameStop ( GME ) amid its sudden surge in 2020, a ride Wolf called "an incredible experience."

“We at Hestia think this is the most compelling investment opportunity we've seen since GameStop back in 2020. And just to give context, the company currently trades for a little over $4 a share, we believe intrinsic value is about $15 to $20 a share,” he said. “They have three segments, all of which are highly valuable. Two of which are profitable. One of which has been poorly run, poor execution, poor strategy, and is bleeding a lot of cash and that really is where the opportunity lies.”

He indicated that the e-commerce business in particular is ripe for improvement. However, Wolf said the business is held back by “an incredibly entrenched board and management team that are unwilling to accept and admit what everybody else knows” in terms of strategy. Namely, he hinted at improvements in the postage meter and global e-commerce businesses as key areas the investor is seeking.

He said his firm is therefore proposing 7 new directors and a new interim CEO. The proposal reiterates some demands previously disclosed in late January . As of January, Hestia held a 7.5% stake in the company.

Shares of the Stamford-based shipping and mailing company carried 3.65% higher in premarket trading on Monday after an over 4% gain on Friday after the interview.

Read more on Hestia’s initial push for changes in late November .

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