Barclays Reiterates an 'Equalweight' on Staples (SPLS); 2Q Preview: Tepid Macro Outlook to Drive Weakness

Barclays reiterates an 'Equalweight' on Staples, Inc. (NASDAQ: SPLS) price target of $18.00.

Barclays analyst says, "We expect 2Q EPS of $0.19 and flat NA Retail comp: We expect 2Q EPS of $0.19, which is in line with the Street, versus $0.20 last year. We forecast a total company comp of (0.5)%, consisting of flat comps at NA Retail, flat comps at NA Delivery, and a (2.5)% comp at International."

"We believe that the long-term prospects for Staples remain mixed. On one hand, we see the potential for Staples to increase its market share on the delivery side of the business as competitors such as Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX) continue to struggle. On the other hand, our macro outlook remains cautious, especially given the disappointing economic data of late. Macroeconomic conditions remain uncertain, particularly in core markets for Staples, including the U.S. and Europe. Furthermore, with the elevated unemployment rate and constrained small business creation, we believe the prospects for Staples and the office products sector overall remain challenging."

For more ratings news on Staples, Inc. click here and for the rating history of Staples, Inc. click here.

Shares of Staples, Inc. closed at $13.21 yesterday.

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