Pitney Bowes Shares Slip On Analyst Downgrade

HARTFORD, Conn. (AP) — Shares of Pitney Bowes Inc. dropped Monday as an analyst downgraded the mail and document management company, citing slow growth and his expectation that the stock will underperform going into next year.

Goldman Sachs analyst Julio C. Quinteros Jr. lowered his rating to "Sell" from "Neutral" and shaved his 12-month price target to $24 from $25.

Quinteros said he expects Pitney Bowes stock to underperform relative to its sector into next year due to lower revenue and operating profit. He also cited a low probability that the company will find a suitable prospect for a merger or acquisition, and its exposure to small and medium-sized businesses.

He said small and medium-sized businesses will continue to face difficulty getting bank financing, even as the broader economy recovers.

He reiterated his outlook for no revenue growth in 2010 and a 2 percent increase in 2011.

Shares fell $1.08, or 4.2 percent, to $24.79 in midday trading. They have ranged from $17.62 to $27.46 over the past year.