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Fly News Breaks for April 27, 2018
SHOP, STMP
Apr 27, 2018 | 08:36 EDT
Roth Capital analyst Darren Aftahi raised his price target on Stamps.com (STMP) to $244 from $230 following recent checks with Shopify (SHOP), which suggested positive trends in customer growth and shipping penetration. In a research note to investors, Aftahi, who has a Buy rating on Stamps.com, said he expects Q1 adjusted earnings per share, revenue and adjusted EBITDA to come in "modestly" above consensus and paid customer growth of 8% y/y to about 780,000. While the analyst said the government's review of the USPS amidst its recurring losses could cause volatility in Stamps.com shares in the interim, given its partnerships with the USPS, he feels that perceived risk is mitigated given the company's presence in shipping.
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