News Breaks
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| 23:11 EDT |  | ODP |
| theflyonthewall.com: | Office Depot is a turnaround play in the rebounding retail sector, BusinessWeek | | Mounting job losses and spending cutbacks have battered the office supply distributors like Office Depot (ODP). The distributors shares have dropped from $39 in 2007 all the way to $1.57 in 2008 before perking up earlier this year. The stock, trading at $6.28 on Nov. 24, "is a turnaround play in the rebounding retail sector, which has caught many analysts off guard," says Bernie Schaeffer, CEO of Schaeffer Investment Research, which acquired shares on their way down. The Q3 loss Office Depot posted was less than analysts had feared, indicating a turnaround, he adds. The stock has made good progress this year, says Schaeffer. Its steady rise in recent weeks is continuing the uptrend, he says. Christopher Horvers of JPMorgan (JPM) says, "The macro environment is in the early stages of a slow recovery." "The stock requires only a modest recovery for our Overweight rating to work," says Horvers. His 12-month target price is $8. Reference Link :theflyonthewall.com |
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