Market Overview

UPDATE: J.P. Morgan Downgrades Staples Following Another Quarter of Underperformance

Share:
Related SPLS
Is Options Activity A Magic 8-Ball? Looking To The Staples-Office Depot Merger For Answers
5 Major Stories You Might've Missed This Week (From Apple TV To The SEC)
Office Depot Q4 Earnings Beat, Provides Cautious 2015 View - Analyst Blog (Zacks)

In a report published Friday, J.P. Morgan analyst Christopher Horvers downgraded the rating on Staples (NASDAQ: SPLS) from Overweight to Neutral, and lowered the price target from $17.00 to $15.00.

In the report, J.P. Morgan noted, “We are downgrading SPLS to Neutral given another quarter of underperformance as secular pressures appear to have accelerated, limiting management's visibility into the business and its ability to overcome headwinds through strategic change. We are lowering our FY13 EPS estimate to $1.24 (vs. guidance of $1.21-1.25) and reducing our FY14 forecast 11% to $1.29. We are establishing a Dec 2014 price target of $15 (previously a Dec 2013 price target of $17), which is also reduced by 11%. With only 7% upside from current levels, we are moving to Neutral. While the bulls may point to lapping price investments, possible share gains from the potential OMX/ODP merger, and easy compares, we believe the company is limited by its real estate portfolio (now seemingly a long-term liability) and the ongoing digital transition.”

Staples closed on Thursday at $14.05.

Latest Ratings for SPLS

DateFirmActionFromTo
Feb 2015Goldman SachsUpgradesSellNeutral
Feb 2015Janney CapitalUpgradesNeutralBuy
Feb 2015TelseyUpgradesMarket Perform

View More Analyst Ratings for SPLS
View the Latest Analyst Ratings

Posted-In: Christopher Horvers J.P. MorganAnalyst Color Downgrades Analyst Ratings

 

Related Articles (SPLS)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→