Northland Cuts Stamps.com To Hold Despite 2Q Earnings Beat

Northland Cuts Stamps.com To Hold Despite 2Q Earnings BeatNorthland Securities cut Stamps.com's stock rating to Hold from Buy citing its high valuation. The downgrade comes shortly after the company's 2Q earnings released on Aug. 6 surpassed Street estimates. Stamps.com shares soared almost 18% on Friday, taking their year-to-date rally to 270%.Northland analyst Tyler Wood maintained Stamps.com's (STMP) price target of $280 (9.5% downside potential). “Stamps.com's Q2 results and full year guidance "blew away" estimates on surging customer adds and average revenue per user,” Wood said.Stamps.com's 2Q earnings jumped 148% to $3.11 per share year-over-year and came ahead of analysts’ expectations of $1.26. Its revenues of $206.7 million exceeded Street estimates of $153.3 million. The company forecasts 2020 revenues to grow in the range of $650 million to $725 million, up from the previous guidance of $570 million to $600 million. Adjusted EPS for 2020 is estimated at $6.25 to $9.25, compared with previous guidance of $4 to $5.Meanwhile, Craig-Hallum analyst George Sutton raised Stamps.com's price target to $340 (9.9% upside potential) from $300, and kept a Buy rating. Sutton was impressed with Stamps.com's 2Q numbers but felt that the guidance was conservative. The analyst believes that “the pandemic has been a material positive for those serving the eCommerce market and also those serving as on-line equivalents of off-line solutions.”Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 1 Buy and 1 Hold. The average price target of $310 implies that the stock is more than fully valued. (See STMP stock analysis on TipRanks).Related News: Wedbush Lifts Apple’s PT To ‘Street High’ ON Semiconductor Quarterly Profit Misses Estimates; Top Analyst Sticks To Buy Barclays Lifts Uber’s PT On Recovery Bet More recent articles from Smarter Analyst: * MGM Spikes 14% As IAC Makes $1B Investment Amid Online Gambling Bet * Marriot Posts Wider-Than-Expected 2Q Loss, Sees 'Gradual Recovery' * Stephens Puts Trade Desk On Hold After 2Q Revenue * FedEx Gains 5% As Bernstein Raises Stock To Buy

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