CNBC's Pisani on Possible Barnes and Noble LBO

How hot is the leveraged buyout (LBO) craze? Credit Suisse just put out a report upgrading bookseller Barnes and Noble . Is business improving? The main reason for the upgrade is that the company is "one of the best-positioned LBO type candidates in our universe." They note the company has consistent cash flow and a cheap valuation.

They think the company could fetch a 25% premium, and detail a 5-year exit strategy for an LBO involving low single digit sales growth, halting store growth and cost cutting. No word on what CEO Leonard Riggio, who owns roughly 20% of the stock, might think of this.