UPDATE: Jefferies Cuts PT to $3 on Office Depot; Earnings Visibility Low

Jefferies cuts its price target from $4 to $3 on Hold-rated Office Depot ODP as charges cloud results and visibility for the fiscal year remains low on a soft first half. Jefferies comments, "Soft sales results in Q1 and a soft Q2 outlook, require top line improvement in 2H to achieve forecasts. Recent results will keep investors skeptical on the prospects of a 2H recovery, so shares will likely stay range bound, despite looking cheap. We could see cash flow allocated to greater downsizing activity next year, depending on how cash flow and debt ratios impact debt ratings." ODP closed at $2.85 on Wednesday.