RE:RE:RE:RE:RE:$8Yes, I fully agree. SXP is small, and there is no dispute that envelopes are in structural decline, so this is never going to trade at a blue chip type multple. However, growth has been fantastic, and free cash flow generation is very strong, so being at only 6x right now is still a joke.
To be conservative, my target is a 10x PE, which would get the stock to around $12 this year.
bucheroncapital wrote: Blue chip CCL.b is trading at 18,5X so a player like SXP could trade between 13~15X sustained earnings, to my knowledge actual earnings are pretty sustainable so from here the stock could double and trade around $15 to $18 backed by real earnings. At one point the buy backs could slow down and excess cash flow could go to a raising divided (we already got @ 20% increase recently).