Staples (SPLS) Management Needs Bigger Knife, Think Best Buy (BBY)
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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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On September 25th Staples (NASDAQ: SPLS) announced a restructuring, and analysts at Nomura think more changes likely lie ahead for the retailer.
Staples plan is to reduce its US footprint 15 percent through ’15. Staples will make similar changes in Europe by closing 45 stores by the end of FY ‘12. The aim is to help fund investments by achieving $250m in cost savings.
“SPLS’s plan resembles Best Buy's (NYSE: BBY) initial actions,” said Nomura analyst Aram Rubinson. “In Best Buy's case, more severe actions followed. While SPLS problems are not as severe as Best Buy's, we think it will need to take stronger medicine over time.”
Nomura Securities has a Neutral rating on Staples, Inc. and a price target of $12.00,
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 $11.41 yesterday.
Staples plan is to reduce its US footprint 15 percent through ’15. Staples will make similar changes in Europe by closing 45 stores by the end of FY ‘12. The aim is to help fund investments by achieving $250m in cost savings.
“SPLS’s plan resembles Best Buy's (NYSE: BBY) initial actions,” said Nomura analyst Aram Rubinson. “In Best Buy's case, more severe actions followed. While SPLS problems are not as severe as Best Buy's, we think it will need to take stronger medicine over time.”
Nomura Securities has a Neutral rating on Staples, Inc. and a price target of $12.00,
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 $11.41 yesterday.
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