Tom Reese/Paul Rubillo, Dividend.com
Office supply retailer Office Depot, Inc. (ODP) was upgraded by analysts at J.P. Morgan this morning.
J.P. Morgan analysts upgraded Office Depot to ''Overweight'' from ''Neutral,'' citing the potential for positive earnings revisions as the economy continues to stabilize in the coming year.
J.P. Morgan also raised its price target on the stock to $8 from $5, saying the shares remain ''high risk,'' but offer a potential 3-to-1 risk-reward scenario.
Office Depot shares rose 36 cents, or +8.2%, in morning trading Friday following the upgrade.
The Bottom Line
Shares of ODP are off 52-week highs of $13 a share. The stock has technical support in the $3.00-$4.00 price area. If the shares can firm up, we see overhead resistance around the $6 price levels. We do not currently rate this non-dividend paying stock, but we do follow the company closely.
Office Depot, Inc. (ODP) does not currently pay a dividend.
