Reaction to Trump decision to leave Universal Postage Union 'naive,' says Craig-Hallum
Craig-Hallum analyst George Sutton notes that Stamps.com was under significant pressure from the announced move by Trump to leave the Universal Postage Union, which will increase prices on certain package shipments from China to the U.S. If there is any impact from the move, an effective tariff on the landed price of Chinese made products, it will result in a modest benefit to the U.S. based e-commerce retailers, which do ship volume through the Stamps.com network, he contends. Moreover, Sutton argues that the stock traded down on an item that if enacted would likely have a modest positive impact on the revenue opportunity. He believes that this is "naive" and has set the stock up very well for outsized gains ahead. The analyst reiterates a Buy rating and $300 price target on the stock
