OfficeMax Upgraded to Buy at Janney Montgomery Scott (OMX)
OfficeMax (NYSE:OMX) was upgraded by equities researchers at Janney Montgomery Scott from a “neutral” rating to a “buy” rating in a research report 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.”
OfficeMax (NYSE:OMX) traded up 7.87% during mid-day trading on Thursday, hitting $13.279. 2,238,420 shares of the company’s stock traded hands. OfficeMax has a 52-week low of $7.04 and a 52-week high of $14.92. The stock has a 50-day moving average of $11.58 and a 200-day moving average of $11.49. The company has a market cap of $1.157 billion and a price-to-earnings ratio of 2.44.
OfficeMax (NYSE:OMX) last announced its earnings results on Tuesday, August 6th. The company reported $0.02 EPS for the quarter, missing the Thomson Reuters consensus estimate of $0.03 by $0.01. The company had revenue of $1.53 billion for the quarter, compared to the consensus estimate of $1.56 billion. During the same quarter in the prior year, the company posted $0.12 earnings per share. The company’s quarterly revenue was down 4.3% on a year-over-year basis. Analysts expect that OfficeMax will post $0.50 EPS for the current fiscal year.
A number of other analysts have also recently weighed in on OMX. Analysts at TheStreet upgraded shares of OfficeMax from a “hold” rating to a “buy” rating in a research note to investors on Friday, October 4th. Separately, analysts at KeyCorp raised their price target on shares of OfficeMax from $14.25 to $14.80 in a research note to investors on Monday, August 12th. They now have a “buy” rating on the stock. Finally, analysts at Deutsche Bank cut their price target on shares of OfficeMax from $11.50 to $11.00 in a research note to investors on Thursday, August 8th. Five analysts have rated the stock with a hold rating and four have given a buy rating to the company. The company currently has an average rating of “Hold” and a consensus price target of $12.23.
OfficeMax Incorporated (NYSE:OMX), is engaged in both business-to-business and retail office products distribution.
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