Goldman Sachs Maintains OfficeMax Buy, Lowers PT To $19 (OMX)

Goldman Sachs maintained its OfficeMax OMX Buy rating and lowered Office Max's PT to $19 from $20 in a research report published today. In the report, Goldman Sachs states, "Given the firm's depressed margins, internal initiatives have the potential to drive operating leverage without the benefit of top-line tailwinds, and we see potential from improvements in supply chain, private label penetration, and contract account profitability driving margins in 2011, as they did in 2010. Moreover, valuation remains depressed on an EV/EBITDA basis, and we have given the company little credit for deploying its building cash balance." Shares of OfficeMax were at $16.57 in after hours trading at the time of posting, reflecting no change from Friday's market close.