NEW YORK (TheStreet) -- Shares of Office Depot Inc  (ODP) - Get Report were getting a boost, up 0.22% to $8.91 in late morning trading Thursday, after analysts at Telsey upgraded the office supplies retailer to "outperform" from "market perform" this morning.

The firm said it believes the company's proposed merger with Staples (SPLS) will be completed by late this year or early next year.

Telsey analysts added that the takeout price will be more than 20% higher than current levels.

Boca Raton, Fla.-based Office Depot,is a supplier of office products and services that sells products and services to consumers through three segments.

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Separately, TheStreet Ratings team rates OFFICE DEPOT INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate OFFICE DEPOT INC (ODP) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 141.3% when compared to the same quarter one year prior, rising from -$109.00 million to $45.00 million.
  • Powered by its strong earnings growth of 138.09% and other important driving factors, this stock has surged by 57.65% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • OFFICE DEPOT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, OFFICE DEPOT INC reported poor results of -$0.67 versus -$0.22 in the prior year. This year, the market expects an improvement in earnings ($0.47 versus -$0.67).
  • The gross profit margin for OFFICE DEPOT INC is currently lower than what is desirable, coming in at 26.08%. Regardless of ODP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.16% trails the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Specialty Retail industry and the overall market, OFFICE DEPOT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: ODP Ratings Report