Deutsche Bank Maintains on Office Depot's Long-Term Restructuring Plan

Deutsche Bank has published a research report on Office Depot

commenting on the company's downsizing plan with 60% of its stores up for renewal in the next 3 years. In the report, Deutsche Bank writes, "After visiting a new 5k sq ft ODP store in Hoboken, NJ, we believe that ODP is on the right track in downsizing its sq ft print while maintaining unit coverage. Product and service coverage is similar to a larger store, though services have a greater focus. At the store we visited, the entire left half of the store was devoted to traditional office products along with some breakroom supplies (Keurig coffee makers and K cups), and even had a small furniture offering in the back in the way of desk chairs. The entire right hand side of the store was devoted to technology and services. The copy and print and tech service depot desk served as the hub of the store, with the intent of highlighting "solutions" as opposed to selling. The far back left of the store was similar to a Kinko's, with computers available to rent and with postal services." Deutsche Bank maintains its Hold rating and $4 price target on Office Depot, which is currently trading up $0.05 from yesterday's $2.56 closing price.