Shares of barnesandnoble.com (Nasdaq: BNBN) climbed 11/16 to 18-11/16 on Monday after its four underwriters initiated coverage of the company. Lead underwriter Goldman Sachs started coverage with a market outperform rating, Merrill Lynch rated the stock a near-term accumulate and a long-term buy, and Salomon Smith Barney and Wit Capital gave barnesandnoble.com a buy rating.
This is hardly encouraging, considering that shares of barnesandnoble.com are barely above their offering price of $18 for its May 25 initial public offering. It’s telling that not one of the four underwriters gave barnesandnoble.com a strong buy rating at this price level. It looks like Amazon.com’s shadow might be bigger than many people imagined.