Credit Suisse Lowers Price Target and Estimates on OfficeMax (OMX)
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Price: $15.26 --0%
Rating Summary:
3 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
Rating Summary:
3 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 16 | New: 19
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Credit Suisse lowered estimates and its price target on OfficeMax (NYSE: OMX), but maintained their Outperform rating.
The firm lowered 2011, 2012 and 2013 EPS estimates to $0.65, $1.00 and $1.25 from $0.95, $1.35 and $1.55. The firm lowered their price target from $23 to $18.
The firm states, "Our confidence level in OMX is lower than prior to Thursday. However, so is the stock, and at 3.1x EBITDA, with the merger potential still out there, as long as the Board keeps close watch over spending we like the risk/reward and would encourage those willing to take a risk for a potentially big reward to look at this name. Lastly, while Q1 results were weak, they were not catastrophic, as sales trends continue to improve on a 2-year basis. There was temporary gross margin and SG&A deleverage due to bad weather (similar to ODP and SPLS), and expenses should be flat for the rest of 2011."
For more ratings news on OfficeMax click here and for the rating history of OfficeMax click here.
Shares of OfficeMax closed at $12.49 yesterday.
The firm lowered 2011, 2012 and 2013 EPS estimates to $0.65, $1.00 and $1.25 from $0.95, $1.35 and $1.55. The firm lowered their price target from $23 to $18.
The firm states, "Our confidence level in OMX is lower than prior to Thursday. However, so is the stock, and at 3.1x EBITDA, with the merger potential still out there, as long as the Board keeps close watch over spending we like the risk/reward and would encourage those willing to take a risk for a potentially big reward to look at this name. Lastly, while Q1 results were weak, they were not catastrophic, as sales trends continue to improve on a 2-year basis. There was temporary gross margin and SG&A deleverage due to bad weather (similar to ODP and SPLS), and expenses should be flat for the rest of 2011."
For more ratings news on OfficeMax click here and for the rating history of OfficeMax click here.
Shares of OfficeMax closed at $12.49 yesterday.
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