Nomura Securities Reiterates a 'Neutral' on Office Depot (ODP)

May 2, 2012 9:43 AM EDT
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Nomura Securities reiterates a 'Neutral' on Office Depot (NYSE: ODP) price target lowered from $3.30 to $3.00.

Analyst, Aram Rubinson, said, "ODP reported adjusted Q1 results of $0.05 yesterday, in line with Street at $0.05, and ahead of our $0.04. However, FCF was neg $128 million at Q1 and guidance for F2012 was reduced to $20-$40 million. ODP is increasingly finding itself in a Catch 22, unable to continue running the business as-is, yet unable to downsize quickly enough. Shrinking only exacerbates the relevance problem, as we saw traffic down 5% in the quarter. Our F2012 and F2013 projections go to $(0.09) and $(0.03) from $(0.04) and $(0.06) – but it is, again, the cash flow that we are most concerned with."

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

Shares of Office Depot closed at $2.85 yesterday.

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