The analysts wrote, “While management is optimistic that restructuring efforts will reinvigorate the business, we continue to believe the process will be costly and take time, with challenges continuing to weigh on results. Staples introduced 2013 EPS guidance which was even below our below-the-Street forecast, with total sales expected to be relatively flat (slightly above or below based on +LSD 52-week guid) versus the 53 weeks in 2012. We note that while the majority of cost savings ($150mn cuts expected in 2013) will be reinvested in the business, we believe more drastic actions are needed to restore productivity and profitability.”
Shares of Staples traded down 7.07% during mid-day trading on Wednesday, hitting $12.35. Staples has a 52 week low of $10.57 and a 52 week high of $16.93. The stock’s 50-day moving average is currently $13.20. The company’s market cap is $8.322 billion.
A number of other analysts have also recently weighed in on SPLS. Analysts at Oppenheimer reiterated a “market perform” rating on shares of Staples in a research note to investors on Wednesday. Separately, analysts at Barclays Capital reiterated an “equal weight” rating on shares of Staples in a research note to investors on Monday. They now have a $13.00 price target on the stock. Finally, analysts at S&P Equity Research raised their price target on shares of Staples from $14.00 to $17.00 in a research note to investors on Wednesday, February 20th. They now have a “buy” rating on the stock.
Five equities research analysts have rated the stock with a buy rating, one has issued an overweight rating, twelve have given a hold rating, and one has assigned an underweight rating to the stock. The stock presently has a consensus rating of “overweight” and a consensus price target of $14.47.
The company also recently announced a quarterly dividend, which is scheduled for Thursday, April 18th. Stockholders of record on Friday, March 29th will be paid a dividend of $0.12 per share. This represents a $0.48 annualized dividend and a dividend yield of 3.61%.
Staples, Inc. (Staples) is an office products company. Staples operates in three business segments: North American Delivery, North American Retail and International Operations.
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