Citigroup Reiterates Neutral Rating, $15 PT on Staples

In a report published Wednesday, Citigroup reiterated its Neutral rating and $15.00 price target on Staples SPLS. Citigroup noted, “We remain on the sidelines for SPLS as we see limited risk adjusted upside from current levels on 1) a still challenging macro both in the U.S. and internationally, 2) a slowly improving but still tentative small business customer, 3) intense competitive pressures/commoditized channel, and 4) continued structural challenges in the company's international business. While the company is making progress, we think there is still time before we see either a significant improvement in the top line or margin. We would become more positive on the name if we started to see some better-than-expected margin improvement before 2013, all else equal.” Staples closed on Tuesday at $13.46.