UPDATE: Jefferies & Company Reiterates Hold Rating, Raises PT on Office Depot

In a report published Wednesday, Jefferies & Company reiterated its Hold rating on Office Depot ODP, and slightly raised its price target from $2.00 to $3.00. Jefferies noted, “Soft sales continued in Q3, and higher-than-expected gross margin led to a beat versus the Street. We are skeptical that a sector facing secular headwinds and higher competition from online players can continue to let gross margin go up. Meanwhile, continued ‘1x charges' cloud real profitability.” Office Depot closed on Tuesday at $2.99.