Goldman Upgrades Staples To Buy

Staples, Inc. SPLS has been upgraded to Buy from Neutral by Goldman Sachs and has also had its price target raised to $23 (from $22), implying a 23% upside. Staples is currently implementing more disciplined capital allocation practices as it continues to buy back stock after a two year hiatus, according to Goldman. Staples faces a tough technology sales outlook in 3Q after the launch of Windows 7 and iPad encroachment on notebooks, while PCs represent a single-digit portion of retail sales, Goldman reports. As a result, Staples is ramping up tech service in its stores. Staples, Inc. closed yesterday at $18.67.