UPDATE: Wunderlich Securities Downgrades United Stationers to Hold, Raises PT on Valuation

In a report published Friday, Wunderlich Securities analyst Brent D. Rakers downgraded the rating on

from Buy to Hold, but raised the price target from $39.00 to $42.00. In the report, Wunderlich Securities noted, “We are lowering our rating on United Stationers (USTR) to Hold. We have been enthusiastic toward United's performance over the last year, driven by management execution, strong gross margin expansion, and operational improvement on a depressed macro-economic backdrop. However, as gross margin expansion opportunities diminish, sales growth performance comes to the center of attention. Opportunity prospects arising from the Depot-Max merger (ODP-NR; OMX-NR), Staples (SPLS-NR) ecommerce expansion program, and e-tail channel development are beneficial to United, but challenging secular trends in legacy office categories, recent underperformance in growth segments, and national customer sales shift to direct purchasing give us pause.” United Stationers closed on Thursday at $42.72.