uploads///ODP

What Analysts Recommend for Office Depot Stock

By

Apr. 12 2018, Updated 9:01 a.m. ET

Majority rate ODP a ‘hold’

Analysts covering Office Depot (ODP) stock continue to be on the sidelines. Of the eight analysts covering the stock, 63% have rated it a “hold,” and 25% have rated it a “sell.” Only 12% have rated it a “buy.”

Office Depot has been struggling since the shift to digital has wreaked havoc on the demand of paper-based office supplies. The growth of Amazon in the retail space is another big factor. The shift to online shopping has made prices highly competitive. All these factors have led to ODP’s top-line erosion. The stock has fallen 42% on a YTD (year-to-date) basis as of April 10, 2018.

Currently, analysts’ 12-month average target price for Office Depot stock is $3.10, which reflects a 50.5% upside to the stock as of April 10, 2018.

Article continues below advertisement

Any respite in the offing?

Office Depot is now transforming itself into a business services company with the acquisition of CompuCom. It’s closing its international operations to focus on its core business. It’s also shutting down US stores at a reduced pace to focus on its omnichannel strategy and reduce costs. The initiatives, although headed in the right direction, could be a drag in the near term.

What analysts are saying about ODP’s peers

Of the 26 analysts tracking Best Buy (BBY) stock, 65% have rated it a “hold,” and 23% have rated it a “buy.” The 12-month average target price for Best Buy stock is $75.77, which reflects a 5.7% upside to the stock as of April 10, 2018.

For Costco (COST), 69% of the 29 analysts covering the stock have given it a “buy” rating, and the rest have rated it a “hold.” The 12-month average target price for Costco stock is $209.46, which reflects a 14.1% upside to the stock as of April 10, 2018.

For Target (TGT), 63% of the 27 analysts have rated it a “hold,” and 26% have rated it a “buy.” The 12-month average target price for Target stock is $76.31, which reflects a 4.8% upside as of April 10, 2018.

Advertisement

More From Market Realist

  • People looking at data on a laptop
    Consumer
    Is Driven Brands (DRVN) a Good Stock to Buy? A Look at the Year Ahead
  • A Moscow Mule drink made with Reed's
    Consumer
    Is Reed's (REED) a Good Stock to Buy? A Look at the Year Ahead
  • Woman using a laptop
    Consumer
    How Taxes on Inherited Stocks Work, Potential Changes
  • Chlorine products
    Consumer
    Why There's a Chlorine Shortage in 2021 and What It Means
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.