Goldman Sachs Upgrades Staples (SPLS) To Conviction Buy

Goldman Sachs upgrades Staples, Inc. (Nasdaq: SPLS) from Neutral to Buy and added the stock to their Conviction Buy List and raised their price target from $22 to $23, which suggest 23% upside.

The firm is calling this a "mean reversion call"; allowing investors to buy a strong franchise at an attractive price.

The firm notes decelerating EBIT growth should run its course by 3Q20, which explains the sharp underperformance of the stock.

Staples continues to gain share and is pursuing more disciplined capital allocation as it continues to buy back stock.

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