Jefferies downgraded both Office Depot (NASDAQ: ODP) and Staples (NASDAQ: SPLS) from Buy to Hold with a price target of $5.25 and $9, respectively, after the merger of the two companies was terminated.

Analyst Danial Binder commented, "Following the court’s decision to issue a PI to block SPLS acquisition of ODP, we are downgrading both companies to Hold from Buy. Our ratings were previously based on SPLS successfully acquiring ODP and benefitting from over $1 billion in synergies. On a standalone basis, each company’s retail and contract segments are vulnerable to secular decline and increased competition, but remaining synergies at ODP and cost cutting at SPLS should help offset pressures."

For an analyst ratings summary and ratings history on Office Depot click here. For more ratings news on Office Depot click here.

Shares of Office Depot closed at $6.09 yesterday.

Analyst Comments Analyst PT Change Downgrades

UBS Downgrades Staples, Inc. (SPLS) to NeutralMay 11, 2016 7:37 AM UBS Downgrades Office Depot (ODP) to SellMay 11, 2016 7:35 AM Office Depot (ODP) Sinks 36%, Staples (SPLS) Falls 15% as Trading Resumes Following Merger TerminationMay 11, 2016 7:15 AM Staples, Office Depot to scrap merger deal after judge rules for FTCMay 10, 2016 7:24 PM Staples and Office Depot to Terminate Merger AgreementMay 10, 2016 7:14 PM Office Depot (ODP) to Terminate Staples (SPLS) Merger Following RulingMay 10, 2016 7:11 PM Office Depot Responds to District Court’s Ruling on Merger with StaplesMay 10, 2016 7:03 PM Office Depot (ODP), Staples (SPLS) both halted for tradingMay 10, 2016 6:42 PM Office Depot (ODP), Staples (SPLS) merger blocked by judge as anticompetitive May 10, 2016 6:40 PM