UPDATE: Jefferies Lowers PT to $2 on Office Depot on a Weak Q2

Jefferies reiterated its Hold rating on Office Depot

and lowered its price target from $3 to $2. Jefferies commented, "Soft sales results in 2Q require modest top line improvement in 2H to achieve forecasts. Recent results will keep investors skeptical on the prospects of a 2H recovery, so shares will likely stay range bound, despite looking cheap. Meanwhile continued 1x items cloud real profitability, but management maintains FCF outlook of $80-$100mn." Office Depot closed at $1.65 on Tuesday.