Piper Jaffray Reiterates Neutral On Staples (SPLS)

Piper Jaffray is reiterating its Neutral rating and $22 price target on Staples Inc. SPLS after the office supply chain reported earnings recently. The company also visited with senior management. In a note to clients, Piper Jaffray writes, "We are reiterating our Neutral rating and $22 PT on SPLS following our travels with management. We had the opportunity to host investor meetings in NYC with Chairman and CEO Ron Sargent and Laurel Lefebrve, VP-IR. While we continue to believe SPLS executes well in tough environment and view the three main growth initiatives favorably, we believe top-line sales trends will remain challenged in 2H F10 and 1H F11 with unemployment levels remaining elevated over this time. Most investor focus was on SPLS' growth initiatives and thoughts on the macro economic environment." Shares of Staples lost 31 cents yesterday to close at $17.90.