Office Depot still a Neutral at Goldman

|About: Office Depot Inc. (ODP)|By:, SA News Editor

"We remain guarded on the office superstore sector, even with consolidation likely to remove some excess capacity, and with the macro backdrop improving," says analyst Matthew Fassler, reinstalling Office Depot (ODP -2.6%) with a Neutral rating and $4.75 price target.

"This sector contends with a unique combination of structural pressures on its end market, as paper consumption and office supplies decline, and with competitive challenges associated with e-commerce."

Any benefits from the OfficeMax merger are likely to be tempered by organic revenue declines, he adds.

Staples (SPLS -0.3%)