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Piper Jaffray Downgrades Bare Escentuals (BARE) to Neutral

January 19, 2010 7:53 AM EST
BARE Hot Sheet
Rating Summary:
    0 Buy, 0 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 23
Piper Jaffray downgrades Bare Escentuals (Nasdaq: BARE) from Overweight to Neutral. Price target increased from $15 to $18.20.

Piper analyst says, "On the heels of the stock moving up significantly last week Friday following a late Thursday afternoon tender offer bid for the company's shares, BARE's investment rating is now more appropriate at a Neutral versus our prior Overweight rating...Other Bidders Possible, But Deal With Shiseido Likely The End Result, In Our View. In response to myriad questions asked of us last week Friday tied to the likelihood of other bidders coming in, we offer the following reasons as to why BARE would still likely continue with Shiseido's offer:#1 The Industry Is Already Well Aware Of The Brand And It's Creator...#2 Leslie Owns The Rights To Her Name And Bare Escentuals "Value" Would Be Diminished Without Her Granting The Rights To Her Name/Image/Etc...or #3 Shiseido A Good Strategic Partner, Not Likely A Mega Conglomerate Aiming To Extract The Highest Profitable Outcome In The Shortest Amount Of Time."

To see all the upgrades/downgrades on shares of BARE, visit our Analyst Ratings page.

Bare Escentuals, Inc. develops, markets and sells cosmetics, skin care and body care products under its bareMinerals, RareMinerals, Buxom and md formulations brands worldwide.

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