UBS Lowers its Earnings Estimates for Staples on Euro Concerns (SPLS)


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Office supply giant Staples, Inc. ( SPLS ) saw its earnings estimates cut on Monday by analysts at UBS, which cited the company's European currency exposure.

UBS currently rates the stock as "Neutral" with a $26.25 price target.

Staples shares, which had closed at $21.66 on Friday, rose 43 cents, or +2%, in premarket trading Monday.

The Bottom Line
We have avoided shares of Staples since our early June 2008 coverage began, when the stock was trading at $23.23. The company has a dividend yield of 1.66%, based on Friday's closing stock price of $21.06. The stock has technical support in the $19 price area. If the stock can continue to firm up, we see overhead resistance around the all-time high levels of $24-$25 a share. We would remain on the sidelines for now.

Staples, Inc. ( SPLS ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: SPLS

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