Citi Has Neutral on Staples

Citi Investment Research is out with a research report on Staples Inc SPLS and it has a Neutral rating and a $15 price target on shares. In a note to clients, Citi Investment Research writes, "We remain on the sidelines for SPLS. We see limited upside from current levels on 1) OM% deleverage on tepid sales growth and continued investments in the business, 2) inventory growth (Q2: +6.8% y/y vs. sales guidance of up low single digits) which could lead to GM% pressure, and 3) a still challenged macro environment which could keep unemployment high." Shares of SPLS closed at $15.43 on Friday, up 89 cents.