UPDATE: Wunderlich Securities Initiates Buy, $32 PT on United Stationers on Valuation
Wunderlich Securities initiates a Buy rating with a price target of $32 per share on United Stationers (NASDAQ: USTR).
Wunderlich Securities says, "We believe YTD share price underperformance represents an attractive opportunity, as delays in a cyclical recovery have evaded the office products space and created Q1 gross margin challenges. We believe Street revenue/margin assumptions have been reduced to makeable/beatable levels, as comparisons will begin to ease 2H12 as certain lost national accounts business will anniversary and cost-reduction programs reduce operating expenses. Amid all the late-April angst attributable to AmazonSupply's industrial website launch, United is positioned to potentially play a unique supporting role within Amazon's expansion given past e-commerce success."
USTR closed at $25.34 on Thursday.
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