Friday, August 14, 2009

B&N STOCK DOWNGRADED TO UNDERPERFORM

Credit Suisse downgraded Barnes & Noble Inc to "underperform" from "neutral,"-- its lowest rating -- saying the company's planned purchase of Barnes & Noble College Booksellers would significantly raise its risk profile, eating up free cash that could have been used to pay a special dividend.

"The deal strategically makes little sense over time as the company essentially doubles its exposure to one of the segments that we believe are most at risk to technology change over the next several years, as well as reduces the cash element of the Barnes story that has supported it for so long," the firm wrote to clients. FORBES


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