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Maxim Group Maintains a 'Buy' on Barnes & Noble (BKS); Q1 Preview: Wary of MSFT & APPL Rumors

August 20, 2012 8:01 AM EDT Send to a Friend
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Price: $16.57 -0.3%

Rating Summary:
    1 Buy, 5 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 10 | New: 20
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Maxim Group maintains a 'Buy' on Barnes & Noble (NYSE: BKS) price target of $30.00.

Analyst, John Tinker, said, "BKS changed its reporting segments in June 2012, merging the Retail and .com segments together into one segment, making y/y segment comps hard to estimate and the recent 10-K filing did not provide a quarterly breakdown on segments. We do not expect any surprises for 1Q13 results as the losses at NOOK are well known; the key catalyst, in our opinion, is Microsoft (Nasdaq: MSFT)(NotRated) closing on its $300M equity investment and $305M longer-term non-recourse financing of “Newco” (BKS College and NOOK divisions) and ultimately the spin-out of these divisions into a separate entity."

Of note: MSFT is rumored to soon launch its new Surface tablet at $199, which could put pressure on NOOK hardware sales. Similarly, there are rumors swirling as to whether Apple (Nasdaq: AAPL)(NR) is about to launch a mini iPad.

For an analyst ratings summary and ratings history on Barnes & Noble click here. For more ratings news on Barnes & Noble click here.

Shares of Barnes & Noble closed at $12.34 yesterday.




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