Barclays Maintains Barnes & Noble's PT & Rating
Barclays released a report Friday where it reiterated its Underweight rating on Barnes & Noble (NYSE: BKS), and held its price target steady at $10.
In the report, Barclays writes, "Remain cautious on BKS. Over the past weekend, BKS cut prices on existing NOOK products, earlier than our projections for a price cut in fiscal 3Q. This is the latest data point that supports our expectation for NOOK sales to continue to register below management's expectations as competition in the E-reader and E-book markets intensifies. We point out that BKS shares have steadily drifted lower since the announcement of Microsoft's investment the digital and College businesses. The Microsoft transaction is expected to close late in fiscal 2Q or early in fiscal 3Q. We believe it is prudent to focus on the company's deteriorating fundamentals and the ongoing significant investments necessary to fund the NOOK and digital business.
Barnes & Noble traded around $12.30 Friday, down about 15 percent year-to-date.
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