Nomura Securities Maintains a 'Neutral' on OfficeMax (OMX); Review of 10-K
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Price: $15.26 --0%
Rating Summary:
3 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on OfficeMax (NYSE: OMX) price target of $6.00.
Analyst, Aram Rubinson, said, "We found a few more interesting items in our 10K review. 1) as the Lehman bankruptcy approaches resolution, an uncertain tax consequence (of up to $260m) could emerge in F12. 2) in Q4/11, OMX became aware of financial difficulties at one of its large contract customers. In response, OMX granted the customer extended payment terms. The receivable from this customer was quite large at $27m at the end of F11. 3) incentive comp declined by $45m in F11, which means OMX will pay out $45m less in F12. Still, with capex of $75-100m, we fear that OMX will be cash flow negative in F12. No change to our Neutral rating or estimates of 2012E at $0.10 vs. Street at $0.71."
For an analyst ratings summary and ratings history on OfficeMax click here. For more ratings news on OfficeMax click here.
Shares of OfficeMax closed at $5.40 yesterday.
Analyst, Aram Rubinson, said, "We found a few more interesting items in our 10K review. 1) as the Lehman bankruptcy approaches resolution, an uncertain tax consequence (of up to $260m) could emerge in F12. 2) in Q4/11, OMX became aware of financial difficulties at one of its large contract customers. In response, OMX granted the customer extended payment terms. The receivable from this customer was quite large at $27m at the end of F11. 3) incentive comp declined by $45m in F11, which means OMX will pay out $45m less in F12. Still, with capex of $75-100m, we fear that OMX will be cash flow negative in F12. No change to our Neutral rating or estimates of 2012E at $0.10 vs. Street at $0.71."
For an analyst ratings summary and ratings history on OfficeMax click here. For more ratings news on OfficeMax click here.
Shares of OfficeMax closed at $5.40 yesterday.
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