Barnes & Noble’s (BKS) unveiling today of its new “Nook Tablet” computer should be “instrumental in driving holiday traffic” to the retailer, writes Barclays Capital’s Alan Rifkin, who maintains an Underperform rating on the shares and a $10 price target.
That’s important, he says, because B&N lost 99 cents per share in its fiscal Q1 ending in July, probably los 8 cents a share last quarter, and will lose another 78 cents in Q4 ending next April, writes Rifkin, which leaves just the January quarter to make “over 200%” of its profit, observes Rifkin.
Rifkin models the company making a $1.25 per share in profit this quarter.
The $249 list price for the Nook Tablet, which goes on sale November 17th, is “while not ideal, should enable it to be somewhat competitive.” Amazon.com’s (AMZN) “Kindle Fire” tablet will cost $199.
Barnes & Noble shares today closed down 22 cents, almost 2%, to $11.39. Amazon shares rose 52 cents, or 0.2%, to $217.