Retail Stocks: OfficeMax hit by downgrade, leading a drop in retail shares

OfficeMax hit by downgrade, leading sector lower NEW YORK (MarketWatch) -- OfficeMax Inc. shares led a decline in retail stocks Monday after the office supplies retailer was cut to neutral by Credit Suisse analyst Gary Balter. OfficeMax shares dropped 5.6%. Balter said the combination of Staples Inc. and its European rival Corporate Express leaves OfficeMax in a "more precarious" position and put OfficeMax and Office Depot Inc. at a disadvantage. Office Depot shares fell 0.5%. Balter, meanwhile, raised his price target on Staples. The analyst estimated the acquisition of Corporate Express could add about 55 cents in per-share profit to Staples over three years. Staples shares fell 0.7%. The S&P Retail Index shares fell 0.3%. It said Monday its board has unanimously rejected an unsolicited offer from Pier 1 Imports Inc. . Cost... [read full story]