Office Depot Upgraded to “Buy” by Janney Montgomery Scott (ODP)
Office Depot (NYSE:ODP) was upgraded by Janney Montgomery Scott from a “neutral” rating to a “buy” rating in a research note issued on Thursday, TheFlyOnTheWall.com reports.
The analysts wrote, “We are upgrading the shares of ODP and OMX to Buy from Neutral. The last obstacle to completion of their merger is the FTC approval, which should be done relatively soon. Once done, estimates are likely to increase rather dramatically as models begin to incorporate cost synergies from the merger. We believe the company’s estimate of $400-600 million in synergies is reasonable, and incremental opportunities from store consolidation, which are not included in these estimates, provides somewhere between a cushion and upside to these estimates. We anticipate store closure synergies to be about $125 million based on our analysis of 300 overlapping stores within 2 miles of each other in key markets. There will be incremental operating costs, but we anticipate them to be modest relative to the magnitude of potential synergies.”
Other equities research analysts have also recently issued reports about the stock. Analysts at KeyCorp raised their price target on shares of Office Depot from $5.25 to $5.50 in a research note to investors on Tuesday, August 13th. They now have a “buy” rating on the stock. Analysts at Zacks upgraded shares of Office Depot from an “underperform” rating to a “neutral” rating in a research note to investors on Wednesday, August 7th. They now have a $4.50 price target on the stock. One research analyst has rated the stock with a sell rating, eight have assigned a hold rating and two have assigned a buy rating to the stock. The stock currently has an average rating of “Hold” and an average target price of $4.70.
Shares of Office Depot (NYSE:ODP) traded up 7.23% on Thursday, hitting $5.04. 9,252,107 shares of the company’s stock traded hands. Office Depot has a 52 week low of $2.26 and a 52 week high of $6.10. The stock has a 50-day moving average of $4.42 and a 200-day moving average of $4.18. The company’s market cap is $1.456 billion.
Office Depot (NYSE:ODP) last released its earnings data on Tuesday, July 30th. The company reported ($0.10) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.10). The company had revenue of $2.40 billion for the quarter, compared to the consensus estimate of $2.43 billion. During the same quarter last year, the company posted ($0.06) earnings per share. Office Depot’s revenue was down 3.5% compared to the same quarter last year.
Office Depot, Inc (NYSE:ODP) is a global supplier of office products and services.
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