Credit Suisse Upgrades Borders Group to Outperform
Credit Suisse upgraded its investment recommendation on shares of Borders Group (BGP) to outperform from neutral.
Analyst Gary Balter says he upgraded the shares on his belief the combination of a very capable, forward thinking CEO, a focus on improved merchandising, and efforts to deal with international underperformance and an overreliance on mall stores, along with very conservative accounting, could lead to near term upside as early as the fourth quarter, and one of the lower multiples of EBITDA in his universe. Balter believes the above-mentioned items all position this stock as one of most attractive in his universe.
The analyst narrowed his $1.40 2006 EPS estimate to 58 cents, and his $1.56 2007 forecast to $1.20, to reflect the recently revised outlook. He has $24 price target on the stock.