Jefferies Reiterates Hold on Staples (SPLS) Following 2Q Report
Jefferies reiterated a Hold rating and $9.00 price target on Staples, Inc. (NASDAQ: SPLS) following the company's 2Q earnings report. EPS of $0.12 came in-line with the Street as strong contract division profitability offset weakness in retail.
Analyst Daniel Binder commented, "Q2 EPS was in line, though Street estimates were at the high end of new Q3 guidance range. Shares were weaker than we expected, but may have reflected concerns about M&A plans. Given lacklustre results, investors may not like the idea of acquisitions, but our sense is this mgmt. will only do highly accretive tuck-ins or deals focused on diversifying away from core office, which is in decline."
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Shares of Staples, Inc. closed at $8.67 yesterday.