Goldman Sachs Upgrades Staples To Neutral On Takeover Sector Consolidation: January 28, 2013
Goldman Sachs Upgrades Staples, Inc. (SPLS) to Neutral
January 28, 2013
Goldman Sachs upgraded Staples, Inc. (NASDAQ: SPLS) from Sell to Neutral with a price target of $14.00 (from $11.50).
The firm expect the multiple to remain above recent troughs if sentiment remains elevated among investors for potential consolidation. Also, a merger between ODP/OMX would modestly benefit Staples due to store closings.
For an analyst ratings summary and ratings history on Staples, Inc. click here. For more ratings news on Staples, Inc. click here.
Shares of Staples, Inc. closed at $12.97 yesterday, with a 52 week range of $10.57-$16.93.
"The possibility of a merger between Office Depot and OfficeMax has been bandied about for some time. Analysts and investors have argued that as profitability shrinks, traditional office supply retailers would need to combine to cut costs and eliminate overcapacity. And with the leader in the field, Staples, having signaled little desire to buy, attention has fallen on its two closest competitors.
Late last month, analysts at Goldman Sachs speculated that the chances of a merger had risen to as high as perhaps 50 percent."