Analysts Views Mixed on Barnes & Noble, Inc. (BKS)

Several analysts have recently weighed in on Barnes & Noble, Inc. (NYSE:BKS), issuing notes to investors. Paul J. Miller of FBR Capital Markets issued a note on the stock on 29th July with a $21.00 price target.

“We reiterate our Market Perform rating and $21 price target on shares of State Bank following 2Q15 earnings. This was another solid operating quarter for the company, given ongoing organic loan growth, fee income growth, and further expense-saving initiatives, while lower accretion income drove net interest income down. Notably, the company terminated its FDIC loss share agreement, resulting in a large one-time charge, but it should benefit earnings over time as State Bank realizes recoveries. Given all the developments in the quarter, we believe that the company remains well positioned for long-term profitability, especially considering expectations for continued loan and fee income growth. That said, with STBZ currently trading around 1.5x our FY15 TBV estimate of $13.86, in line with peers, and modestly below our $21 price target, we remain on the sidelines in regard to shares. Following 2Q15 earnings, we adjust our FY15 operating EPS estimate to $0.85 from $1.11, given our expectations for lower net interest income in FY15, and maintain our FY16 operating EPS estimate of $1.15. Uncovered loans increased 6% quarter over quarter to $1.5 billion and comprise the majority of gross loans.”

Miller also added, “STBZ currently trades at approximately 1.5x 2Q15 tangible book value of $13.51 per share. Our price target of $21 is equal to 1.5x our FY15E TBV of $13.44 and represents a P/E multiple of roughly 18.3x our FY16E EPS. Changes in the way that financials are valued may present a risk to our price target and/or rating. There could be upside to our price target if State Bank’s earnings reflected lower-than expected credit costs, higher fee income and net interest income, or stronger net interest margins. Downside risk to our price target would exist if credit losses in the commercial loan and consumer loan portfolios were to deteriorate and affect earnings and book value more significantly than anticipated.”

Barnes & Noble, Inc. (NYSE:BKS) is a retailer of content, digital media and educational products. The Company’s segments include Barnes & Noble Retail (B&N Retail) and NOOK. The Company is a content, commerce and technology company, which provides access to trade books, textbooks, magazines, newspapers and other content across its multi-channel distribution platform. The Company’s principal business is the sale of trade books (generally hardcover and paperback consumer titles), mass market paperbacks (such as mystery, romance, science fiction and other fiction), children’s books, eBooks and other digital content, textbooks and course-related m aterials, NOOK and related accessories, bargain books, magazines, gifts, emblematic apparel and gifts, school and dorm supplies, cafe products and services, educational toys and games, music and movies direct to customers through its bookstores or on The Company operates approximately 648 bookstores in around 50 states.

Oct 13, 2015 Barnes & Noble, Inc. (NYSE:BKS) the nation’s largest retail bookseller and a leading retailer of content, digital media and educational products, revealed its impressive lineup of events, products and special guests to be featured at its stores nationwide during the first-ever retail Mini Maker Faire, from Friday, November 6, through Sunday, November 8. Throughout the weekend, customers will have the opportunity to participate in interactive product demonstrations to learn about programming, coding and 3D printing, and to take part in collaborative hands-on experiences designed to stretch their imaginations and creative thinking as they work cooperatively to make something original. They will also be able to “Meet the Makers,” as leaders in the Maker Movement and local Makers will visit Barnes & Noble stores nationwide, includingDale Dougherty, the Founder and Executive Chairman of Maker Media/Maker Faire, Simon Shen, CEO of XYZprinting, Ayah Bdeir, Founder and CEO of littleBits, Nader Hamda, Founder and CEO of Ozobot, Parker Thomas, Inventor of Maker Studio, Bill Ritchie, Founder of ThinkFun,plus so many others at stores nationwide.

Related posts

Leave a Comment