UPDATE - UBS Initiates Coverage on OfficeMax (OMX) with a Neutral; Maximizing the Balance
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Price: $15.26 --0%
Rating Summary:
3 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 3
Rating Summary:
3 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 3
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UPDATE - UBS initiates coverage on OfficeMax (NYSE: OMX) with a Neutral rating. PT $7.
UBS analyst says, "We think OMX shares will stagnate for the near term. While the stock will likely be supported by its inexpensive valuation, we think it probably will not be rewarded in a meaningful way until the company demonstrates that it can maintain the balance of its market share position and margin structure. Most likely, over the next couple of quarters, we believe it will have to “give back”
some of the margin gains it has achieved."
"Absent an office supply industry recovery, the stock is likely stuck - Given the uncertainty about the longer term prospects for the office supply industry, we believe OMX shares are likely to hover around the recent range. In this case, elusive EPS growth will need to drive the stock."
UBS analyst says, "We think OMX shares will stagnate for the near term. While the stock will likely be supported by its inexpensive valuation, we think it probably will not be rewarded in a meaningful way until the company demonstrates that it can maintain the balance of its market share position and margin structure. Most likely, over the next couple of quarters, we believe it will have to “give back”
some of the margin gains it has achieved."
"Absent an office supply industry recovery, the stock is likely stuck - Given the uncertainty about the longer term prospects for the office supply industry, we believe OMX shares are likely to hover around the recent range. In this case, elusive EPS growth will need to drive the stock."
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