UPDATE: Deutsche Bank Raises PT to $6 on OfficeMax

Deutsche Bank reiterates its price target on Hold-rated OfficeMax (NYSE: OMX) to $6 from $5 on favorable sales trend.

Deutsche Bank says, "4Q11 results were mixed, with upside on sales offset by weak gross margins implying that at some of the sales upside was on discounting. But, 1Q12 sales trends remain favorable while gross margins have rebounded to flat y/y compared to down 74 bps in 4Q (down 118 bps excl the extra week). So, for at least one quarter, OMX appears to be able to “walk and chew gum at the same time”, in the words of their CEO, by showing improving sales at the same time as improving margins. We maintain our Hold but are encouraged by 1Q12 trends."

OMX closed at $6.04 a share on Thursday.

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