The firm said it lowered its rating on the worldwide supplier of office products and services based on its belief that Office Depot's supplies and paper sales will continue to wear away.
Goldman Sachs also cited a contract customer survey that revealed a large percentage of the company's customers are willing to change providers. Analysts see a higher risk for customer departure, the flyonthewall.com reports.
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Goldman Sachs maintained its $7.15 price target on the stock.
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 robust revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."