On The Road With Pitney Bowes Analysts

In a report published Monday, Brean Capital analysts maintained a Buy rating on

, with a price target of $30, following meetings with CFO Mike Monahan. Pitney Bowes has recently acquired

. The analysts believe that BorderFree has the potential to add up to $50M-$60M to Pitney Bowes' EBITDA over the next two to three years. This translates to an EPS increment of about $0.20. The analysts believe that the acquisition positions Pitney Bowes to capitalize on the "very nascent but large and growing market of eCommerce shipping" in the long term. In the report Brean Capital noted, "BRDR organizationally and philosophically is much more synergistic that overlapping. Specifically, BRDR has a pure retail focus for cross-border shipping and has been much more successful than PBI at cultivating relationships with significant retailers. In fact, in our view PBI hasn't been as successful as it would like to be in adding large retailers, and we believe this is one of the most prominent reasons for the acquisition." The acquisition is a part of Pitney Bowes' vision of "making shipping a broad strategic imperative," the analysts added.