Jefferies Lowers Price Target on Staples (SPLS)
Jefferies reported on Friday that it has lowered its price target on office supply retailer, Staples, Inc. (SPLS).
The firm has reduced its price target on SPLS from $15 to $14. This price target suggests a 8% increase from the stock’s current price of $12.89. An analyst from the firm said, “a low quality beat in Q4 with lower incentive comp and charges clouding profitability, management guided to a more optimistic top line outlook than most expected.”
“We didn’t really see upside to doing this but Staples is attempting to drive top line growth by reinvesting $150 million of cost savings back into price, marketing and an expanded SKU base,” the analyst comments. “Given the challenges in the business, this will remain a show me story.”
Staples shares were up 11 cents, or 0.90% during Friday morning trading. The stock has declined -16% in the past year.
The Bottom Line
Shares of Staples, Inc. (SPLS) have a 3.73% yield, based on Friday morning’s price of $12.88.
Staples, Inc. (SPLS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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