Morgan Stanley Reiterates Overweight Rating on Staples

In a report published Wednesday, Morgan Stanley reiterated its Overweight rating on Staples

. Morgan Stanley noted, “2Q results were below expectations across the board as management lowered its full-year sales and EPS guidance. Following somewhat weaker competitor results, the shortfall is disappointing, but not totally unexpected. While the company reiterated its $1+ bn FCF guidance and repurchased $159 mm of shares in the quarter, it will likely need to make clearer plans to cut costs for investors to believe in medium-term cash flows.” Staples closed on Tuesday at $13.46.