Pitney Bowes Inc.PBI has signed a mail transformation deal with one of Europe's leading providers of customer communications, Communisis. Through this 10-year collaboration, Pitney Bowes will facilitate Communisis in becoming the transactional services' world leader.
For this, the company will introduce transformational mailing insertion software and solutions for Communisis at the latters' Transactional Print and Mail Center of Excellence project in Yorkshire, UK. With this integrated solutions, Pitney Bowes will help the advancement of Communisis' transactional mail services to its clients via leveraging efficiency and cost-effectiveness.
Notably, Communisis, which is enjoying a speedy development with the physical and digital communications offering to its top clients, seeks to further intensify its foothold in the domain. Pitney Bowes' expert aid will help the company in processing and distributing hundreds of millions of transactional mails for its customers.
The latest deal strengthens Pitney Bowes and Communisis bond, which has tasted success in their former endeavor. Previously, Pitney Bowes fruitfully supported Communisis in its first Transactional Print and Mail Center of Excellence project in Liverpool, UK.
As a matter of fact, Pitney Bowes has been focusing on stabilizing its mailing business by undertaking strategic marketing initiatives like go-to-market strategy and SaaS-based SMB relay communications hub. Particularly, the launch of Relay Multi-Channel Communication Suite is expected to boost the performance of its SMB segment, going forward. This apart, over the past few months, Pitney Bowes has introduced several new products and services across its portfolio, that is expected to augment top-line growth in the near term.
Consequently, we believe the company's three major targets for the latter half of 2015, namely, stabilization of its mail business, growth in digital commerce and improvement in operational excellence, are already showing signs of success.
However, although the Communisis alliance promises strong long-term prospects, in the near term Pitney Bowes may face challenges due to the prevailing softness in the European economic environment.
Pitney Bowes currently carries a Zacks Rank #4 (Sell). Better-ranked stocks in the industry include Sharps Compliance Corp. SMED , Sealed Air Corp. SEE and CECO Environmental Corp. CECE . While Sharps Compliance sports a Zacks Rank #1 (Strong Buy), CECO Environmental and Sealed Air hold a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>