UBS Lowers its Earnings Estimates for Staples on Euro Concerns (SPLS)

Filed in earnings, euro, Gold, Gold Investing, shares, ubs by on May 10, 2010 0 Comments

Office supply giant Staples, Inc. ( SPLS ) saw its earnings estimates cut on Monday by analysts at UBS, which cited the company’s European currency exposure. UBS currently rates the stock as “Neutral” with a $26.25 price target. Staples shares, which had closed at $21.66 on Friday, rose 43 cents, or +2%, in premarket trading Monday. The Bottom Line We have avoided shares of Staples since our early June 2008 coverage began, when the stock was trading at $23.23. The company has a dividend yield of 1.66%, based on Friday’s closing stock price of $21.06. The stock has technical support in the $19 price area. If the stock can continue to firm up, we see overhead resistance around the all-time high levels of $24-$25 a share. We would remain on the sidelines for now. Staples, Inc. ( SPLS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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UBS Lowers its Earnings Estimates for Staples on Euro Concerns (SPLS)

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