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PBI: Expanded Buybacks And Dividend Will Support Stronger Future Share Repricing

PBI: Share Buyback Program Will Drive Future Shareholder Returns

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PBI
AnalystConsensusTarget
Not Invested
Published 01 May 2025

Update shared on 16 Dec 2025

Fair value Decreased 7.14%
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AnalystConsensusTarget's Fair Value
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1Y
34.7%
7D
3.3%

Analysts have trimmed their price target on Pitney Bowes by approximately $1.00 to about $13.00 per share, reflecting expectations for slightly weaker top line growth, partially offset by improved profit margins and a lower anticipated future earnings multiple.

What's in the News

  • Pitney Bowes expanded its share repurchase authorization by an additional $100 million in October 2025, bringing the total program size to $500 million (Key Developments).
  • From July 1, 2025 to October 24, 2025, the company repurchased 16,622,576 shares, or 9.49 percent of shares outstanding, for $189.51 million, completing its buyback of 25,744,283 shares, or 14.48 percent, under the February 11, 2025 authorization (Key Developments).
  • Management updated 2025 guidance and now expects revenue near the low end of the previously disclosed $1.9 billion to $1.95 billion range (Key Developments).
  • The board declared a quarterly cash dividend of $0.09 per share, payable December 8, 2025 to shareholders of record as of November 10, 2025 (Key Developments).

Valuation Changes

  • The fair value estimate has been reduced modestly from $14.00 to $13.00 per share.
  • The discount rate has declined slightly from 9.33 percent to 9.20 percent, reflecting a marginally lower perceived risk profile.
  • The revenue growth assumption has been cut more meaningfully, from approximately negative 1.15 percent to negative 1.60 percent, indicating expectations for softer top-line trends.
  • The net profit margin forecast has improved from about 16.27 percent to 17.69 percent, signaling stronger anticipated profitability.
  • The future P/E multiple has been lowered from roughly 7.78x to 6.71x, implying a more conservative valuation on expected earnings.

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Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.