Deutsche Bank Downgrades Staples (SPLS) to Hold
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Price: $56.16 -0.07%
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 15 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank downgraded Staples, Inc. (NASDAQ: SPLS) from Buy to Hold with a price target of $11.00 (from $18.00).
The firm comments, "We had maintained a positive view on Staples for two reasons. First, their North American business had been holding up reasonably well. Secondly, SPLS had been taking share in North America from Office Depot and OfficeMax at a consistent pace. At a discounted valuation, these had been enough to offset the structural issues of too much capacity chasing less demand and sales migrations to other channels. But, 2Q12 results show that these two positives no longer hold, leaving us with no reason to recommend the stock outside of valuation, thus prompting our downgrade to Hold."
The firm notes that North American operating profit fell 11% in 2Q12, while sales fell 1.7%.
For an analyst ratings summary and ratings history on Staples, Inc. click here. For more ratings news on Staples, Inc. click here.
Shares of Staples, Inc. closed at $13.46 yesterday.
The firm comments, "We had maintained a positive view on Staples for two reasons. First, their North American business had been holding up reasonably well. Secondly, SPLS had been taking share in North America from Office Depot and OfficeMax at a consistent pace. At a discounted valuation, these had been enough to offset the structural issues of too much capacity chasing less demand and sales migrations to other channels. But, 2Q12 results show that these two positives no longer hold, leaving us with no reason to recommend the stock outside of valuation, thus prompting our downgrade to Hold."
The firm notes that North American operating profit fell 11% in 2Q12, while sales fell 1.7%.
For an analyst ratings summary and ratings history on Staples, Inc. click here. For more ratings news on Staples, Inc. click here.
Shares of Staples, Inc. closed at $13.46 yesterday.
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