Officemax (OMX) (SGS) (TRU) (TX) (YOKU) Biggest NYSE Losers

Officemax Inc. (OMX), Stream Global Services Inc. (SGS), Torch Energy Royalty (TRU), Ternium S.A. (TX), Youku.com Inc. (YOKU) and The Cash Store Financial Services Inc. were the biggest NYSE losers on Thursday, November 17.

Stream Global Services Inc. (SGS) ended the session down 14.93 percent, and closed at $2.45. They traded in a range of $2.37 to $2.92. A total of 28,609 shares changed hands.

Torch Energy Royalty (TRU) ended the session down 18.44 percent, closing at $3.14. They traded in a range of $2.88 to $4.26. A total of 241,279 shares changed hands.

Ternium S.A. (TX) ended the session down 17.98 percent, closing at $20.67. They traded in a range of $20.50 to $24.90. A total of 2,603,675 shares changed hands.

Youku.com Inc. (YOKU) ended the session down 16.11 percent, closing at $17.24. They traded in a range of $16.03 to $17.48. A total of 9,532,619 shares changed hands.

The Cash Store Financial Services Inc. (CSFS) ended the session down 15.71 percent, closing at $8.05. They traded in a range of $7.80 to $9.22. A total of 32,353 shares changed hands.

KEMET Co. (KEM) ended the session down 13.04 percent, closing at $9.00. They traded in a range of $8.58 to $10.33. A total of 1,477,703 shares changed hands.

Officemax Inc. (OMX) ended the session down 12.43 percent, closing at $4.65. They traded in a range of $4.48 to $5.39. A total of 5,524,096 shares changed hands.

Price Targets (LONG) (LOW) (MUR) (NEE) (OMX) Weekly Recap

Price targets on shares of eLong, Inc. (NASDAQ: LONG), Lowe’s (NYSE: LOW), Murphy Oil Corp (NYSE: MUR), NextEra Energy, Inc. (NYSE: NEE) and Officemax Inc (NYSE: OMX) updated by analysts during the last week.

BMC Equities Research raised their price target on eLong, Inc. (LONG) from $17.00 to $20.00.

Citigroup (NYSE:C) raised their price target on Lowe’s (LOW) from $26.00 to $28.00. They have a “hold” rating on the company.

Morgan Stanley (NYSE:MS) cut their price target on Murphy Oil Corp (MUR) to $90.00. They have an “overweight” rating on the company.

Wunderlich raised their price target on NextEra Energy, Inc. (NEE) from $60.00 to $64.00. They have a “buy” rating on the company.

Oppenheimer cut their price target on Officemax Inc (OMX) from $18.00 to $14.00. They have an “outperform” rating on the company.

Ratings on (NLCI) (OMX) (SMT) (SPLS) (STP) Downgraded

Ratings on shares of Nobel Learning Communities (NASDAQ: NLCI), Officemax Inc (NYSE: OMX), SMART Technologies Inc (NYSE: SMT), Staples, Inc. (NASDAQ: SPLS) and Suntech Power (NYSE: STP) were downgraded by analysts.

Signal Hill downgraded Nobel Learning Communities (NLCI) to a “hold” rating.

Oppenheimer downgraded Officemax Inc (OMX) from an “outperform” rating to a “perform” rating. They have a price target of $9.50 on the company, down from $14.00.

Cowen downgraded SMART Technologies Inc (SMT) from an “outperform” rating to a “neutral” rating.

Piper Jaffray (NYSE:PJC) downgraded SMART Technologies Inc (SMT) from an “overweight” rating to a “neutral” rating.

Oppenheimer downgraded Staples, Inc. (SPLS) from an “outperform” rating to a “perform” rating. They have a price target of $19.00 on the company, down from $26.00.

Collins Stewart downgraded Suntech Power (STP) from a “buy” rating to a “neutral” rating. They have a price target of $8.00 on the company, down from $10.00.

Price Targets on (VIT) (OMX) (RSG) (SINA) (SORL) Updated

Price targets on shares of VanceInfo Technologies Inc. (NYSE: VIT), Officemax Inc (NYSE: OMX), Republic Services (NYSE: RSG), Sina (NASDAQ: SINA) and Sorl Auto Parts, Inc. (NASDAQ: SORL) were updated by analysts.

Deutsche Bank (NYSE:DB) cut their price target on VanceInfo Technologies Inc. (VIT) from $40.00 to $37.00. They have a “buy” rating on the company.

Oppenheimer cut their price target on Officemax Inc (OMX) from $18.00 to $14.00. They have an “outperform” rating on the company.

Morgan Stanley (NYSE:MS) cut their price target on Republic Services (RSG) to $38.00. They have an “overweight” rating on the company.

Credit Suisse (NYSE:CS) raised their price target on Sina (SINA) from $127.70 to $140.00.

Brean Murray cut their price target on Sorl Auto Parts, Inc. (SORL) from $15.00 to $9.00. They have a “buy” rating on the company.

Price Targets on (OMX) (OXY) (PCLN) (PHM) Updated by Analysts

Officemax Inc (NYSE: OMX), Occidental Petroleum Co. (NYSE: OXY), Priceline (NASDAQ: PCLN) and PulteGroup, Inc. (NYSE: PHM) get price targets updated today by analysts.

Piper Jaffray (NYSE:PJF) cut their price target on Officemax Inc (OMX) from $14.00 to $13.00.

Oppenheimer raised their price target on Occidental Petroleum Co. (OXY) from $105.00 to $125.00. They have an “outperform” rating on the company.

The Benchmark Company raised their price target on Priceline (PCLN) from $570.00 to $660.00. They have a “buy” rating on the company.

Benchmark Co. raised their price target on Priceline (PCLN) from $570.00 to $660.00. They now have a “buy” rating on the company.

Jefferies (NYSE:JEF) raised their price target on PulteGroup, Inc. (PHM) from $8.50 to $9.00.

Goldman Sachs (GS) Sees (OMX), (ANF), (AEO), (RSH), (ANN), (GPS), (SWY) in LBO Deals

The retail sector could be about to explode in LBO deals, according to Goldman Sachs (NYSE:GS), which sees the probability of LBO's for Safeway (NYSE:SWY), The Children's Place Retail Stores (NASDAQ:PLCE), OfficeMax (NYSE:OMX), Ross Stores (Nasdaq:ROST), Abercrombie & Fitch (NYSE:ANF), American Eagle Outfitters, (NYSE:AEO), Aeropostale (NYSE:ARO), RadioShack (NYSE:RSH), AnnTaylor Stores (NYSE), Dollar Tree (DLTR) and Gap (NYSE:GPS).

American Eagle Outfitters (NYSE:AEO) got a nice bump up on Wednesday on LBO rumors, so we'll probably start to see a lot of trading in the sector as rumors escalate, with a number of them probably being true, as pointed out by Goldman.

These are just some of the probabilities in the retail sector, which could consolidate even more.

Goldman determines that about $9 billion could be spent on U.S. retail LBOs. Of a universe of over 120 public companies, that equates to close to 8 percent of the overall aggregate enterprise value. That's how they came up with the 11 companies listed above, as far as the number of companies which are likely to be part of an LBO.

Goldman sees a 15 percent to 30 percent chance of a leveraged buy out for the companies listed above.

United Stationers (Nasdaq:USTR), Office Depot (NYSE:ODP), Home Depot (NYSE:HD) Top Retail Picks of FBR

FBR liked what they saw in general for hardline retailers in December, and released a report on a number of companies, of which their favorites are United Stationers (Nasdaq:USTR), Office Depot (NYSE:ODP) and Home Depot (NYSE:HD), all which they have an "Outperform" on.

FBR says, "Retail sales as reported by the census for hardlines (these companies do not report monthly comp store sales), were generally good for the categories we track in December, with all categories but one showing a sequential improvement in YOY trends. Most notable was Home Improvement (building materials, garden equipment and supplies dealers, NAICS 444) which was up +13.1% YOY. This was an acceleration from the +11.2% reported in October, and an improvement on a 3-year stacked basis. Consumer Electronics Sales (NAICS 443) improved to +1.8% YOY for the month of December, up from -0.4% in November. Based on the recent results and comments out of BBY & HGG (both included the month of December), as well as HD, the strength within this category was likely driven by appliances. Aftermarket Auto Parts were up +9.6% YOY, and this was up from +9.3% in November. So, the strength in after-market auto parts continues its pace. Home Furnishings were flat sequentially, at +1.4% YOY for the month of December. Strength in this category continues to be on the furniture side. Office Supplies (NAICS 4532) sales are reported on a one month lag, and these were up +7.7% in the month of November, up from -1.7% in October. While this category showed notable strength, it contradicts our channel checks, which have shown a slight deceleration in the month of November.

Those getting a "Market Perform" from FBR included Lowe's (NYSE:LOW), RadioShack (NYSE:RSH), Best Buy (NYSE:BBY), hhgregg (NYSE:HGG), OfficeMax (NYSE:OMX), AutoZone (NYSE:AZO), Advanced Auto (NYSE:AAP), and O'reilly (Nasdaq:ORLY).

Companies with an "Underperform" rating were Staples (Nasdaq:SPLS), Genuine Parts (NYSE:GPC), Tractor Supply (Nasdaq:TSCO), and Bed Bath & Beyond (Nasdaq:BBBY).

Lowe’s (NYSE:LOW), Staples (Nasdaq:SPLS), OfficeMax (NYSE:OMX), Office Depot (NYSE:ODP), Should See Little Impact from Australian Floods

Commenting on their hardline retail universe with exposure to Australia, FBR Capital said they don't see much impact on Lowe’s (NYSE:LOW), Staples (Nasdaq:SPLS), OfficeMax (NYSE:OMX) or Office Depot (NYSE:ODP) at this time.

FBR noted, "We have received questions and there have been reports of a potential negative impact to the Australian GDP from floods in Queensland Australia. Within our hardline retail universe, four companies have what looks to be relatively insignificant exposure in Australia. Staples (Underperform) & OfficeMax (Market Perform) have the most exposure with 4% of total company sales in Australia. Office Depot’s (Outperform) exposure is extremely limited, via license/alliance. Lowe’s (Market Perform) is in the infancy stages of a joint venture in Australia which was created 8/24/09 with the first stores to open in FY2011, and therefore has no exposure. The flooding is centered around eastern Queensland, so not all of Australia is exposed. There have been some product delays in these areas, but they haven’t prolonged, based on our discussions with the companies. Australia is a higher margin market for Staples & OfficeMax. For Staples, as an example, Australia garners nearly double the company's international EBIT margins at 6% vs. total international EBIT margins of 3.2%. All in, the companies may have to speak to this during their quarterly earnings calls, related to their international divisions, however the impact is considered insignificant and isolated at this stage. We have no changes to estimates."

Lowe's closed Wednesday at $24.44, up $0.05, or 0.21 percent. Staples closed at $23.49, gaining $0.61, or 2.67 percent. OfficeMax ended the trading session at $17.91, up $0.70, or 4.07 percent. Office Depot closed trading at $5.87, the same as the session the day before.

OfficeMax (NYSE:OMX) Gross Margins Have Room to Grow

After recently meeting with the management team of OfficeMax (NYSE:OMX), Barclays (NYSE:BCS) said they believe their gross margins have room to expand, although there will be some challenges over the next 12 months.

Barclays said, "We recently hosted investor meetings with members of OMX's management team. Our takeaways from the meetings included: We think OMX still has room to expand its gross margin even though comparisons will become more difficult in the next few quarters. The company should benefit from increasing its penetration of private label products, improved shrink performance, and greater supply chain efficiency. On the contract side, we think the company is taking a deeper look at the profitability of each customer to ensure that certain benchmarks are met. These factors should provide a tailwind into 2011...We think the demand environment remains stable...In our view, OMX shares should have substantial upside once the office supply industry experiences a resurgence, but the timing of this upturn remains elusive."

Barclays maintains an "Equalweight" rating on OfficeMax, which closed Tuesday at $17.82, up $0.21, or 1.19 percent. They have a price target on them of $19 by Barclays.

Best Buy (NYSE:BBY), 5 Cents Only (NYSE:NDN), Family Dollar (NYSE:FDO), Big 5 Sporting Goods (Nasdaq:BGFV) Among Retail LBO Possibilities

With consolidation activity increasing in the retail sector, Deutsche Bank (NYSE:DB) updated their LBO screen, which included companies rated a "Buy" like Best Buy (NYSE:BBY), 5 Cents Only Stores (NYSE:NDN), Family Dollar (NYSE:FDO) and Big 5 Sporting Goods (Nasdaq:BGFV).

Companies listed which included a "Hold" on them were RadioShack (NYSE:RSH), OfficeMax (NYSE:OMX) and Bed Bath & Beyond (Nasdaq:BBBY).

All of the stores listed above are in the top 7 from Deutsche LBO screen, and which also would expect to be acquired at a premium of 20 percent or more, other than Family Dollar.

RadioShack, the No. 1 company listed, closed Wednesday at $18.73, losing $0.29, or 1.52 percent. They could attract a bid as high as $30 a share.

Big Five Sporting Goods is No. 2 on the list, which closed Wednesday at $13.12, gaining $0.72, or 5.81 percent. They could received a bid as high as $17 a share.

OfficeMax is No. 3 on the list, and closed Wednesday at $17.91, rising by $0.94, or 5.54 percent. They could be acquired for as high as $22 a share.

Best Buy is No. 4 on Deutsche's list, and closed Wednesday at $44.81, increasing by $0.64, or 1.45 percent. Possible acquisition price for them could be $58 a share.

99 Cents Only Stores is in the No. 5 position, closing at $16.14 Wednesday, gaining $0.41, or 2.61 percent. An possible acquisition price of $20 was placed on them.

Bed Bath & Beyond is No. 6, and they closed at $44.32 Wednesday, rising by $1.59, or 3.72 percent. Possible acquisition price on them is $53.

Last among the top seven is Family Dollar, which closed Wednesday at $50.68, gaining $1.29, or 2.61 percent. Acquisition price for them was listed at $60 a share.