Option Millionaires

[jimmybob]

Staples LBO potential doesn't provide significant upside, says Loop Capital
After The Wall Street Journal said Staples is holding talks with private equity firms about a possible sale, Loop Capital analyst Anthony Chukumba estimated that a leveraged buyout at $11 per share would generate a "decent" IRR of 16%, though still short of the returns PE firms typically target. While an LBO at a premium is possible, it "would not be a 'slam dunk' by any stretch," said Chukumba, who doesn't think the possibility provides significant upside potential from current levels. He keeps a Hold rating and $10 price target on Staples shares, which are up nearly 10% to $9.53 in afternoon trading following the Journal's report