Office Depot Has a Lot to Prove With the CompuCom Acquisition
Any company spending over $1 billion on a buyout is going to be on the hook to make its new asset work. That's the case with struggling office-products retailer Office Depot (NASDAQ: ODP), which in early October announced a roughly $1.1 billion acquisition-and-debt-assumption deal to buy privately held IT services specialist CompuCom Systems from private-equity operator Thomas H. Lee Partners.
The market indicated its displeasure at the news by trading Office Depot stock down by around 15%. Many investors clearly don't believe CompuCom can return the company to growth. I don't think it's impossible, but Office Depot will need to demonstrate that it's viable -- and do so quickly.
Image source: Office Depot.
Source: Fool.com
The ODP Corp. Stock
€35.00
-0.570%
Currently there is a rather positive sentiment for The ODP Corp. with 3 Buy predictions and 0 Sell predictions.
With a target price of 57 € there is a hugely positive potential of 62.86% for The ODP Corp. compared to the current price of 35.0 €.
