Office Depot (ODP) Rated Hold By Deutsche Bank Securities

Deutsche Bank Securities analysts Mike Baker and Adam Sindler rated shares of Office Depot Inc ODP a Hold, with a price target of $8 per share. Baker and Sindler said that Office Depot Inc is working on a plan to reduce its $1.4 billion of indirect costs. The analysts said that the greatest near term risk for Office Depot Inc is the rebidding of about $600 million in government contracts during the summer. The Deutsche Bank Securities analysts wrote, "while ODP has not formally presented a long term margin goal, a 4% operating margin is achievable overtime. Improvements in the economy, as well as internal process improvements would be needed. At a 4% margin, we believe earnings power would be about $1."