UPDATE: Stifel Nicolaus Downgrades Barnes & Noble to Hold on Headline Risk
Stifel Nicolaus reduced its rating on Barnes & Noble (NYSE: BKS) from Buy to Hold and suspends its previous $25 price target.
Stifel Nicolaus noted, "We see three buckets of headline risk (EPS, increased competition in e-books, and increased competition in College) over the near term, while we continue to see the positives of (a) significant potential scope of NOOK/Newco and (b) BKS positioning within the publishing and land lord community as the last large bookstore chain. We do, then, advise ”waiting on the sidelines” this storm season. Our READ Survey has suggested, for a few months, e-book hardware sales have flattened (this was bound to occur as only consumers who read a lot need dedicated readers)."
Barnes & Noble closed at $13.31 on Tuesday.
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