Office supply retailer Staples, Inc. (
) on Thursday caught some continued bearish commentary from
analysts at Goldman Sachs, following
Wednesday's awful second quarter earnings report
The firm reiterated its "Sell" rating on SPLS and slashed its
price target from $14 to $11. That new target suggests a small
downside to the stock's Wednesday closing price of $11.49.
A Goldman analyst commented, "We lower our SPLS estimates to
reflect softer revenue across all three divisions, and lower
profitability. We take our gross margin forecasts down on
preemptive pricing measures. Our EPS estimates change as follows:
2012 EPS goes to $1.40 from $1.49, 2013 goes to $1.45 from $1.55,
and 2014 goes to $1.52 from $1.63. We model EBIT down consistently,
with buybacks serving as an offset."
Staples shares fell 13 cents, or -1.1%, in premarket trading
The Bottom Line
Shares of Staples (
) have a 3.83% dividend yield, based on last night's closing stock
price of $11.49. The stock has technical support in the $10 price
area. If the shares can firm up, we see overhead resistance around
the $13.50-$14.00 price levels.
Staples, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.0 out of 5 stars.
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, as well as a detailed explanation of
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