FBR Capital Maintains an 'Outperform' on Office Depot (ODP); Equity Market Tidbits
Tweet
Share
E-mailGet Alerts ODP Hot Sheet
Price: $28.00 --0%
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
FBR Capital maintains an 'Outperform' on Office Depot (NYSE: ODP).
FBR analyst says, "ODP is trading slightly higher, up ~4% vs. a 0.1% performance of the S&P 500. The announcement of an internal CEO appointment is anti-climactic, per se. Neil Austrian, at 71, is nonetheless the best internal alternative, vs. the promotion of one of the company's existing lieutenants, or vs. the appointment of a lesser-known external candidate (a la OfficeMax (NYSE: OMX)). In this regard, the CEO announcement is considered a relief. We do not think that this latest announcement intensifies an ODP/OMX merger scenario. We are not proponents of such an ODP/OMX scenario, as the financial risks would be high, in our opinion. Strategic value of other form(s) for ODP have more merit, in our view: Mexico and International, ex Mexico (30% of sales). See our latest sum-of-the-parts valuation herein. ODP in the meantime has shown signs of stability under its existing turnaround plan, with total company sales on track to be positive for 2Q11E, for the first time since Q407. ODP's North American sales trends have narrowed vs. the industry, as we outline herein. Neil is familiar with the business, and his willingness to take on the CEO position at age 71 provides comfort that ODP continues build off of trough trends, in our view."
For more ratings news on Office Depot click here and for the rating history of Office Depot click here.
Shares of Office Depot closed at $4.02 yesterday.
FBR analyst says, "ODP is trading slightly higher, up ~4% vs. a 0.1% performance of the S&P 500. The announcement of an internal CEO appointment is anti-climactic, per se. Neil Austrian, at 71, is nonetheless the best internal alternative, vs. the promotion of one of the company's existing lieutenants, or vs. the appointment of a lesser-known external candidate (a la OfficeMax (NYSE: OMX)). In this regard, the CEO announcement is considered a relief. We do not think that this latest announcement intensifies an ODP/OMX merger scenario. We are not proponents of such an ODP/OMX scenario, as the financial risks would be high, in our opinion. Strategic value of other form(s) for ODP have more merit, in our view: Mexico and International, ex Mexico (30% of sales). See our latest sum-of-the-parts valuation herein. ODP in the meantime has shown signs of stability under its existing turnaround plan, with total company sales on track to be positive for 2Q11E, for the first time since Q407. ODP's North American sales trends have narrowed vs. the industry, as we outline herein. Neil is familiar with the business, and his willingness to take on the CEO position at age 71 provides comfort that ODP continues build off of trough trends, in our view."
For more ratings news on Office Depot click here and for the rating history of Office Depot click here.
Shares of Office Depot closed at $4.02 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Fiserv (FISV) PT Lowered to $60 at Freedom Broker
- Cantor Fitzgerald Reiterates Overweight Rating on Merlin Labs (MRLN)
- Intuitive Machines Inc. (LUNR) PT Lowered to $32 at Cantor Fitzgerald, Reaffirms Overweight Rating
Create E-mail Alert Related Categories
Analyst CommentsSign 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!
