UPDATE: Goldman Sachs Reiterates Neutral Rating, Lowers PT on Barnes & Noble
In a report published Monday, Goldman Sachs Group reiterated its Neutral rating on Barnes & Noble (NYSE: BKS), but lowered its price target from $21.50 to $17.00.
Goldman Sachs noted, “We recently revamped our BKS model to reflect the company's realigned divisions: Nook, Retail and College. We lower our overall sales forecasts to reflect softer third-party data on historical ereader shipments and softer retail same-store sales estimates. We raise our overall gross margin estimates, reflecting a higher mix of content, though we would note that lower ebook pricing from the DOJ settlement and lower Nook device pricing will likely continue to pressure margins. We raise our EPS estimate in FY2013, but lower our FY2014 and FY2015 estimates.”
Barnes & Noble closed on Friday at $12.78.
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