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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