UPDATE: Deutsche Bank Raises PT to $6 on OfficeMax

Deutsche Bank reiterates its price target on Hold-rated OfficeMax 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.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorPrice TargetReiterationIntraday UpdateAnalyst RatingsDeutsche Bank
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!