Barnes & Noble Education downgraded to Hold from Buy at Needham

Needham downgraded Barnes & Noble Education to Hold from Buy without a price target following the news that the Department of Education is beginning a negotiated rulemaking process that could alter the company’s First Day Complete inclusive access program. The proposed changes, which call for a shift from requiring students to opt-out to opt-in, present a risk to the current margin trajectory of the overall business, the analyst tells investors in a research note. The firm says that while Barnes & Noble Education intends to fight the proposed changes and there will be a public commenting period prior to any final decision, the regulatory uncertainty will make it more difficult for the company to refinance its debt.