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Office Depot (NYSE:ODP) was downgraded by Zacks from an “outperform” rating to a “neutral” rating in a research note issued to investors on Thursday. They currently have a $5.25 price objective on the stock. Zacks‘s price objective would indicate a potential upside of 5.21% from the company’s current price.

Zacks’ analyst wrote, “Office Depot’s store rationalization drive and subsequent increases in synergies expectations impressed us again. The company expects to generate $100 million in annual savings from store closures, up from $75 million projected earlier. Including these, management has raised merger synergies expectations by another $25 million to $700 million by 2016. The company’s second quarter 2014 results also benefited largely from the merger. Revenues of $3,841 million did surpass the Zacks Consensus Estimate and loss per share of $0.02 came in line. We perceive that though the company efforts in respect of costs containment and enhancing online sales are in the right direction but the secular headwinds in the sector will provide considerable resistance. As evident from the pro forma revenue that slid 2%. Consequently, we downgrade our recommendation on the stock to Neutral.”

A number of other analysts have also recently weighed in on ODP. Analysts at Goldman Sachs initiated coverage on shares of Office Depot in a research note on Tuesday, June 24th. They set an “equal weight” rating and a $6.35 price target on the stock. Separately, analysts at Morgan Stanley initiated coverage on shares of Office Depot in a research note on Tuesday, June 24th. They set an “equal weight” rating and a $6.35 price target on the stock. Seven research analysts have rated the stock with a hold rating and five have given a buy rating to the company. The stock has a consensus rating of “Hold” and a consensus target price of $6.20.

Shares of Office Depot (NYSE:ODP) traded up 1.40% on Thursday, hitting $5.06. The stock had a trading volume of 2,142,453 shares. Office Depot has a 52-week low of $3.84 and a 52-week high of $5.85. The stock’s 50-day moving average is $5.22 and its 200-day moving average is $4.90. The company’s market cap is $2.720 billion.

Office Depot (NYSE:ODP) last announced its earnings results on Tuesday, August 5th. The company reported ($0.02) EPS for the quarter, meeting the Thomson Reuters consensus estimate of ($0.02). The company had revenue of $3.80 billion for the quarter, compared to the consensus estimate of $3.80 billion. During the same quarter in the prior year, the company posted ($0.10) earnings per share. The company’s quarterly revenue was up 58.8% on a year-over-year basis. On average, analysts predict that Office Depot will post $0.17 earnings per share for the current fiscal year.

Office Depot, Inc (NYSE:ODP) is a global supplier of office products and services.

To view Zacks’ full report, visit Zacks’ official website.

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