Barclays Maintains an 'Underweight' on Barnes and Noble (BKS); Borders Liquidation: A Near-Term Benefit but Secular Headwinds Remain
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Price: $6.49 --0%
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Underweight' on Barnes and Noble (NYSE: BKS), PT $17.
Barclays analyst says, "Yesterday afternoon, Borders reported that it would liquidate its remaining 399 stores after failing to receive any purchase offers...The Borders liquidation event itself would be negative for Barnes & Noble. However, we expect Barnes & Noble to benefit during the short term following the liquidation. If one assumes that Barnes & Noble captures 10% - 15% of Borders' revenue from year-end 2010 (or $220 - $330 million), Barnes & Noble could realize 3% - 4.5% in incremental revenue. We believe a 10% - 15% market share shift is a reasonable assumption given the impact of recent number-two retailers liquidating, including Linens 'n Things and Circuit City. However, given the significant shift from brick & mortar to E-readers, we note that this estimate could be slightly aggressive."
For more ratings news on Barnes and Noble click here and for the rating history of Barnes and Noble click here.
Shares of Barnes and Noble closed at $17.23 yesterday.
Barclays analyst says, "Yesterday afternoon, Borders reported that it would liquidate its remaining 399 stores after failing to receive any purchase offers...The Borders liquidation event itself would be negative for Barnes & Noble. However, we expect Barnes & Noble to benefit during the short term following the liquidation. If one assumes that Barnes & Noble captures 10% - 15% of Borders' revenue from year-end 2010 (or $220 - $330 million), Barnes & Noble could realize 3% - 4.5% in incremental revenue. We believe a 10% - 15% market share shift is a reasonable assumption given the impact of recent number-two retailers liquidating, including Linens 'n Things and Circuit City. However, given the significant shift from brick & mortar to E-readers, we note that this estimate could be slightly aggressive."
For more ratings news on Barnes and Noble click here and for the rating history of Barnes and Noble click here.
Shares of Barnes and Noble closed at $17.23 yesterday.
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