18 October 2006 — New York (NY): Citigroup has reiterated its Office Depot Buy rating and $60 dollar target following the release of Depot’s Q3 results.
During the quarter, Depot saw growth in its private label products across all three business segments. Citigroup’s Bill Simms said: "We continue to believe Office Depot can nearly triple its private brand penetration from roughly 20 percent today to over 50 percent within five years time."
Citigroup also believes that over the next few quarters, Depot’s biggest upside will come from the international division. The division’s sales were up 13 percent in US dollars during Q3.
Depot’s Q3 total sales growth of 10 percent exceeded Citigroup’s expectations of four percent.