Bank of America Reiterates Underperform Rating, $9 PT on Staples on Structural Issues

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In a report published Wednesday, Bank of America reiterated its Underperform rating and $9.00 price target on Staples
SPLS
. Bank of America noted, “While management is optimistic that restructuring efforts will reinvigorate the business, we continue to believe the process will be costly and take time, with challenges continuing to weigh on results. Staples introduced 2013 EPS guidance which was even below our below-the-Street forecast, with total sales expected to be relatively flat (slightly above or below based on +LSD 52-week guid) versus the 53 weeks in 2012. We note that while the majority of cost savings ($150mn cuts expected in 2013) will be reinvested in the business, we believe more drastic actions are needed to restore productivity and profitability.” Staples closed on Tuesday at $12.43.
Posted In: Analyst ColorReiterationAnalyst RatingsBank of America
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