UPDATE: Morgan Stanley Cuts PT to $18 on Staples; Growth Yet to Materialize

Morgan Stanley reiterates its Overweight rating on Staples SPLS and cuts its price target from $19 to $18 on shares. Morgan Stanley comments, "We remain OW, as 2-3% revenue growth looks attainable as adjacent category sales continue to grow and core supplies stabilize. At ~9x ‘13E EPS, secular concerns are fully reflected. We believe mid-term upside could result from share gains, margin improvement, and eventually cyclical improvement." SPLS closed at $13.91 on Wednesday.