Market Overview

UPDATE: Morgan Stanley Downgrades Staples to Equal-Weight: Cashflow at Risk

Related SPLS
Benzinga's Weekend M&A Chatter
Jefferies: We Still Think Staples-Office Depot Deal Gets FTC Approval
Staples (SPLS) to Keep Stores Closed on Thanksgiving Day (Zacks)

Morgan Stanley reduced its rating on Staples (NASDAQ: SPLS) from Overweight to Equal-weight and removed its previous price target of $18 a share.

Morgan Stanley commented, "With sales faltering, cash flows at greater risk.Declining core supplies, paper and ink sales continue to offset growth in adjacent categories. In particular, 2% ink and 3-6% paper sales declines in 1H12 despite 2% white collar employment growth suggests a steeper decline in printing than we had previously expected. With revenues declining modestly and fixed costs halted, but not significantly reduced, the cash flows that we find attractive about SPLS appear in greater risk over the next two to three years.

Staples closed at $10.98 on Thursday.

Latest Ratings for SPLS

Aug 2015CitigroupMaintainsNeutral
Jul 2015Evercore PartnersUpgradesSellHold
Apr 2015JefferiesUpgradesHoldBuy

View More Analyst Ratings for SPLS
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings


Related Articles (SPLS)

View Comments and Join the Discussion!

Get Benzinga's Newsletters