Analyst Ups Target on Coinstar (CSTR), Redbox's Growth Potential Rises on New Pricing at Netflix (NFLX)
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Price: $20.10 --0%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 7 | New: 9
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 10 | Down: 7 | New: 9
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CRT Capital is reiterating its Buy rating on shares of Coinstar (NASDAQ: CSTR) while raising its price target from $65 to $70.
The firm believes that Coinstar's Redboxs will benefit from the new price increases at Netflix (Nasdaq: NFLX). The largest portion of people affected by the new price increases are those you occasionally stream movies and occasionally order them through the mail. DA Davidson anticipates that these subscribers will chose one or the other, order via mail or streaming with a majority of them choosing streaming.
According to NFLX's 10-Q at the end of Q1, 28 percent or 6.4 million of their domestic subscribers only pay for streaming. Netflix reported a total of 22.8 million domestic subscribers at the end of Q1, which means that 17.6 million have have to choose between a streaming-only plan, a DVD-only plan, or a higher priced combined plan.
An analyst at DA Davidson commented, "Since NFLX has stated that the majority of subscribers primarily view content through streaming services versus DVD services, we estimate ~12 million users will lean towards choosing the streaming-only plan."
For more ratings news on Coinstar click here and for the rating history of Coinstar click here.
Shares of Coinstar closed at $57.38 yesterday.
The firm believes that Coinstar's Redboxs will benefit from the new price increases at Netflix (Nasdaq: NFLX). The largest portion of people affected by the new price increases are those you occasionally stream movies and occasionally order them through the mail. DA Davidson anticipates that these subscribers will chose one or the other, order via mail or streaming with a majority of them choosing streaming.
According to NFLX's 10-Q at the end of Q1, 28 percent or 6.4 million of their domestic subscribers only pay for streaming. Netflix reported a total of 22.8 million domestic subscribers at the end of Q1, which means that 17.6 million have have to choose between a streaming-only plan, a DVD-only plan, or a higher priced combined plan.
An analyst at DA Davidson commented, "Since NFLX has stated that the majority of subscribers primarily view content through streaming services versus DVD services, we estimate ~12 million users will lean towards choosing the streaming-only plan."
For more ratings news on Coinstar click here and for the rating history of Coinstar click here.
Shares of Coinstar closed at $57.38 yesterday.
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