Maxim Group Starts Barnes and Noble (BKS) at Buy; Playing for the "Early Majority"

Maxim Group initiates coverage on Barnes and Noble (NYSE: BKS) with a Buy. PT $20.00.

Maxim analyst says, "With an estimated 5M plus subscribers, NOOK is repositioning BKS as an online retailer with a subscriber-driven model winning a 27% share of eBooks vs. its historic physical book market share of 17%. The transition to a NOOK driven subscriber/media cash flow model rather than a traditional retailer/EPS model may produce fluctuations in the stock price which provide attractive entry points."

"We estimate that BKS should add 6M/8M net eReaders in FY12/13 to create an installed base of 10M/18M. In the same way that the Apple stores complement the Apple (Nasdaq: AAPL) product, a key asset in BKS is its informed sales force and the community it formed with book readers...We are forecasting EBITDA rebounds from a FY11 low of $163M to $210M in FY12."

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

Shares of Barnes and Noble closed at $14.59 yesterday.

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