Nomura Securities Reiterates a 'Neutral' on OfficeMax (OMX); Q4 Review

Nomura Securities reiterates a 'Neutral' on OfficeMax (NYSE: OMX) price target of $6.00.

Analyst, Aram Rubinson, said, "OMX reported adjusted Q4 earnings of $0.17, ahead of the Street at $0.15 and our projection of $0.01. Results were driven by higher-than-expected sales and lower OG&A, offset in part by lower gross margin in both the Retail and Contract segments. We have long argued that OMX is over-earning on gross margin. Our pricing work has suggested the OMX prices higher than both Staples (Nasdaq: SPLS) and Amazon (Nasdaq: AMZN) at retail. Moreover, we believe that investing in technology (a lower-margin category) is critical to ultimately growing the top line. We are raising our F2012 and F2013 estimates to $0.10 and negative ($0.40) from $0.00 and negative ($0.50) respectively. Our new estimates reflect slower deterioration in the Contract business than previously modeled, and ongoing concerns around Retail."

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 $6.04 yesterday.

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