Color on Office Depot (ODP) Downgrade: Market 'Overly Optimistic' on Turnaround
More News related to ODP
- Give More and Spend Less with Incredible Black Friday Deals at Office Depot
- Office Depot Expands Assortment of Digital Cameras Just in Time for the Holidays
- A Photo of the Ribbon-Cutting Ceremony for the Sixth Puerto Rico Office Depot Store, Located in Ponce, is Available on Business Wire's Web Site and AP PhotoExpress
- Office Depot Shows Holiday Shoppers How to Gift Smarter This Holiday Season
- Office Depot Renews Agreement With DemandTec
More News related to Downgrades
- Provident Financial (PROV) Commences $40M Stock Offering
- QKL Stores (QKLS) Completes 6 Million Share Offering
- Microvision (MVIS) Prices 3.3M Shares at $3/Share for Net Proceeds of ~$9.3M
- Yongye Int'l (YONG) Files $100M Mixed Securities Shelf
- SINA Corp. (SINA) Completes $180M Private Equity Financing with New-Wave
Color on today's analyst downgrade of Office Depot (NYSE: ODP):
Earlier, Credit Suisse lowered its investment rating on shares of Office Depot from Neutral to Underperform.
The firm believes that even in light of a recent sell-off (the stock is down 23% since mid-October), the market is being overly optimistic on the company's turnaround. Credit Suisse no longer feels that Office Depot will be able to continue margin growth at a pace that would support current valuation.
"We believe that the market is being too dependent on macro trends and on the assumption that when these trends reverse, margins will return to prior levels."
Despite broader markets which are up about 1% amid better-than-expected economic data, shares of Office Depot are moving about 1.7% lower, most recently trading at $5.95.
Related Categories
DowngradesTrader Talk
Stocks Mentioned
-0.12Related Entities
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
