Goldman Sachs Comments On Office Depot, Increases PT To $5.50 (ODP)

Goldman Sachs commented on Office Depot ODP and increased its Office Depot price target from $5 to $5.50 in a research report published today. In the report, Goldman Sachs states, "ODP's 4Q10 result suggests that sector trends remain sluggish, margins are stabilizing, and cost cuts have more teeth going forward. ODP guided to gross cost cuts of $80-$90 mn in 2011, with net benefits of $30-$50 mn (reinvesting $40-$50 mn of savings), and an aggregate annual benefit run rate of $180-$190 mn by 2013. Note that this range of impact includes both restructuring benefits and the anticipated $100 mn savings from ODP's previously announced Business Process Improvement program." Shares of Office Depot were trading at $5.39 at the time of posting, down 1.82% from Tuesday's market close.