Inside Wall Street: Don't Expect Barnes & Noble's Pop to Last

Updated

Thanks to a surprise move by activist investor Ron Burkle, shares of Barnes & Noble (BKS) had an unusually exciting day on Tuesday Feb. 2, running up to as high as $21 a share from the previous day's closing price of $18. But don't be fooled. The upswing isn't likely to last long, warn some pros.

In spite of the flurry, Wall Street remains unattracted to Barnes & Noble. Of the seven major analysts who follow the largest U.S. bookseller, none recommend buying the stock: Four are neutral and three advise selling it. Among those rating the stock a sell or underperform are Standard & Poor's, whose 12-month target price is $18; Goldman Sachs with a $17 target; and Credit Suisse with a $16 target. The stock closed on Feb. 4 at $18.89 a share.

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