UPDATE - UBS Upgraded Office Depot (ODP) to Neutral; Balanced Risk-Reward
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Price: $50.83 -0.82%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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UPDATE - UBS upgraded Office Depot (NYSE: ODP) from Sell to Neutral. PT $3.
UBS analyst says, "With ODP’s shares trading 11.5% below our $3 target, we are upgrading our rating to Neutral. We think the range of potential outcomes for the stock is wide, but there is just as much potential upside as there is downside at this point. In recent weeks, the risk profile been stretched out by a more ominous macro outlook on the low end, offset by signs of improved execution on the bullish side."
"Industry consolidation would lead to greatest value creation, in our view - We continue to believe that industry consolidation is the path that would create the most value for ODP & the other office suppliers. The recent soft economic data could imply that this outcome is inching closer, but the latest actions from OMX suggest that it still doesn’t have a strong desire to partner up (such as open market purchases by its CEO & the appointment of 2 new leaders in its contract segment)."
UBS analyst says, "With ODP’s shares trading 11.5% below our $3 target, we are upgrading our rating to Neutral. We think the range of potential outcomes for the stock is wide, but there is just as much potential upside as there is downside at this point. In recent weeks, the risk profile been stretched out by a more ominous macro outlook on the low end, offset by signs of improved execution on the bullish side."
"Industry consolidation would lead to greatest value creation, in our view - We continue to believe that industry consolidation is the path that would create the most value for ODP & the other office suppliers. The recent soft economic data could imply that this outcome is inching closer, but the latest actions from OMX suggest that it still doesn’t have a strong desire to partner up (such as open market purchases by its CEO & the appointment of 2 new leaders in its contract segment)."
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