Jefferies analyst Daniel Binder bumped his price target on Office Depot (NYSE: ODP) to $5.25 (from $5.00) while reiterating a Hold rating following Q1 results which beat low expectations despite plenty of 1x items.

Binder comments, "Management set a low bar at the outset of the year and shares came under pressure. As those expectations were beat and the minimum EBIT goal was raised today, shares rebounded strongly. Large 1x charges were taken ($151 million), which clouds results, but this was expected. Even after raising the minimum profit expectation, it appears management’s guidance is conservative, so we could see a string of beats ahead."

The firm raised FY 2014 EPS from $0.17 to $0.21 and FY 2015 EPS from $0.20 to $0.27.

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Shares of Office Depot closed at $4.83 yesterday.