Office Depot still a Neutral at Goldman


"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%)

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Comments (3)
  • Proficiency Post
    , contributor
    Comments (57) | Send Message
     
    Depot will announce disastrous results tomorrow.
    It is expected to half its workforce (30,000+ cuts) and cut 800 stores.

     

    Self destruct buttons already pressed. Murderous meltdown aided by Staples, WBMason and Amazon attack will take $4Bn sales away in 2014/15.

     

    Depot dead in the water!
    5 May 2014, 01:28 PM Reply Like
  • Proficiency Post
    , contributor
    Comments (57) | Send Message
     
    The lack of understanding by bandwagon broadcasters/analysts about the business supplies marketplace continues. Office Depot reports Q1’14 results tomorrow when CEO 'Chainsaw' Roly Smith is expected to announce poor performance and savage job cuts of up to 30,000 people & 800+ stores saving $1.5Bn.

     

    Staples, WBMason and Amazon attacks expected to win $4Bn+ pa from Depot self- destruction

     

    Depot is dead in the water.
    5 May 2014, 02:51 PM Reply Like
  • CARLVP
    , contributor
    Comments (55) | Send Message
     
    Buy wen there is blood in the streets I'm long JAN 15 $12 calls with a modest paper profit and expect more to come.
    5 May 2014, 06:52 PM Reply Like
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