KeyBanc Downgrades Essendant (ESND) to Sector Weight

KeyBanc downgraded Essendant (NASDAQ: ESND) from Overweight to Sector Weight and removed its price target. The change follows Q2 results and guidance, with disappointing margin outlook.

Analyst Bradley Thomas said, "ESND reported 2Q EPS that was below expectations, with margins pressured by product and customer mix, which is expected to continue in 2016. We’re disappointed by the results and concerned that share gains from new contract wins will not be enough to offset the ongoing secular challenges ESND faces. While we’re hopeful ESND can drive improvements in margin back to historically higher levels, we’d like to see evidence of stabilization before getting more positive."

For an analyst ratings summary and ratings history on Essendant click here. For more ratings news on Essendant click here.

Shares of Essendant closed at $32.49 yesterday.

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