Office Depot Upgraded on What-Ifs; Rises 10%

Office Depot(ODP Quote) has not achieved any monumental turnaround, but a J.P. Morgan analyst has nonetheless decided to upgrade the stock on some potential maybes.

Analyst Christopher Horvers said in a note on Friday that he upgraded the stock to overweight from neutral, on his belief that the economy will stabilize over the next year. About 70% of the company's revenue growth is attributable to macro-economic conditions.

But what happens if said foreseen stabilization comes a cropper? Investors don't seem to care, sending shares of the office supplies retailer soaring 10% in morning trading to $4.82.

Other reasons for the upgrade: stabilizing same-store sales and the potential full-year benefit from store closures. ...