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Staples, Inc. Message Board

  • ametrosixual ametrosixual Feb 19, 2013 1:42 PM Flag

    Noruma Bernstein And Credit Suisse To Raise Staples Top Line Bottom Line Estimates

    Staples would benefit, as well. It stands to pick up lost sales from any store closings and any merger-synergy disruptions, they said.

    If Office Depot or OfficeMax “failed to execute well, Staples could benefit more significantly,” said Nomura analyst Aram Rubinson, adding Staples also could pick up some sales to business and other contract customers.

    He added Staples’ sales stand to benefit by 2% in North America retail and delivery for a minimum potential per-share profit boost of 10 cents a share.

    Some analysts said Staples could also buy some stores that may close in markets that are dominated by Office Depot and OfficeMax and it could also hire some departing sales staff from the combined entity.

    “We see three winners,” said Credit Suisse analyst Gary Balter.

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    Sanford C. Bernstein & Co. analyst Colin McGranahan estimated Staples may see an annual per-share profit boost of less than 20 cents, “unless a potential (Office Depot-OfficeMax) merger integration were to go very poorly, thereby generating much more substantial incremental revenues for” Staples.

    He estimated for Office Depot and OfficeMax, the value of the synergies could be as much as $2.5 billion to $4 billion, potentially “dwarfing the combined market cap of the two stocks.”

    Analysts estimate the two companies could shut 25% to 30% of their combined store base.

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