Maxim Group maintains a 'Buy' on Barnes & Noble (BKS); Not All Bad in Tablet-Land; Opportunity For More BKS Apps
Tweet
Share
E-mailGet Alerts BKS Hot Sheet
Price: $6.49 --0%
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
2 Buy, 8 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Join SI Premium – FREE
Maxim Group maintains a 'Buy' on Barnes & Noble (NYSE: BKS) price target of $30.00 (from $32.00).
Analyst, John Tinker, said, "NOOK is an Android based product, while Microsoft (Nasdaq: MSFT)(NotRated) yesterday announced its own tablet and appears to be selling it only through its 20 retail stores and online and not through BKS’ ~691 retail stores, under a store within a store model, similar to the way NOOK devices are proposed to sell post Newco spin-off. It is believed that Google (Nasdaq: GOOG)(NR) is about to announce its own tablet launch. If BKS continues to execute well on the digital content side with 27% plus eBooks market share (vs. about 17% for physical book sales) then additional tablets with BKS app could be useful."
Separately, as Tinker, reviewed FY12 financials, he said, "...Overall, the retail bookstore was profitable and inline with our estimates and supports a “$1B” valuation at 3x EBITDA multiple, i.e. the current market cap, suggesting that the College and NOOK business is available for “free”. Speculation continues that insiders might like to take the retail stores private."
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 $15.24 yesterday.
Analyst, John Tinker, said, "NOOK is an Android based product, while Microsoft (Nasdaq: MSFT)(NotRated) yesterday announced its own tablet and appears to be selling it only through its 20 retail stores and online and not through BKS’ ~691 retail stores, under a store within a store model, similar to the way NOOK devices are proposed to sell post Newco spin-off. It is believed that Google (Nasdaq: GOOG)(NR) is about to announce its own tablet launch. If BKS continues to execute well on the digital content side with 27% plus eBooks market share (vs. about 17% for physical book sales) then additional tablets with BKS app could be useful."
Separately, as Tinker, reviewed FY12 financials, he said, "...Overall, the retail bookstore was profitable and inline with our estimates and supports a “$1B” valuation at 3x EBITDA multiple, i.e. the current market cap, suggesting that the College and NOOK business is available for “free”. Speculation continues that insiders might like to take the retail stores private."
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 $15.24 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- QuantumScape (QS) PT Lowered to $6 at Truist Securities
- TD Cowen Resumes EQT Corp. (EQT) at Hold
- Piper Sandler Downgrades Southwestern Energy (SWN) to Neutral
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS View, Analyst PT Change, RumorsRelated Entities
Maxim GroupSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
