Roth Capital Believes Stampscom (NASDAQ: STMP) Still Has Room to Grow

By Jason Carr

In a report issued on July 28, Darren Aftahi from Roth Capital reiterated a Buy rating on Stampscom (NASDAQ: STMP), with a price target of $166. The company’s shares opened today at $148.10, close to its 52-week high of $158.75.

Aftahi noted:

“We look for more normal and decelerating growth in 2H17 and FY18. On balance, we still believe STMP is well positioned for long-term macro e-commerce tailwinds, but forward valuation may be more reflective of normalized growth rates. Shopify channel checks suggest increased usage of shipping solutions. Of the 100+ Shopify customers who responded to our recent 2Q17 survey, ~78% used SHOP payments, while 30% used SHOP shipping solutions (with ~63% using Stamps.com’s Endicia as one of its providers). This is up from 28% last quarter from our survey.”

According to TipRanks.com, Aftahi is a 1-star analyst with an average return of -0.2% and a 50.3% success rate. Aftahi covers the Technology sector, focusing on stocks such as The Meet Group Inc, Mitek Systems Inc, and Angie’s List Inc.

Stampscom has an analyst consensus of Strong Buy, with a price target consensus of $162.

Stampscom’s market cap is currently $2.54B and has a P/E ratio of 28.21. The company has a book value ratio of 6.4043.

Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is neutral on the stock. Most recently, in May 2017, John Roland Clem, the Chief Product & Strategy Offic of STMP bought 3,085 shares for a total of $99,985.

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Stamps.com, Inc. provides Internet-based mailing and shipping solutions. Its solutions Stamps.com and Endicia are used to mail and ship a variety of mail pieces, including postcards, envelopes, flats and packages. The company also offers multi-carrier shipping solutions under the brand names ShipStation and ShipWorks.