Wedbush Downgrades Outerwall Inc. (OUTR) to Neutral

Wedbush downgraded Outerwall Inc. (NASDAQ: OUTR) from Outperform to Neutral with a price target of $45.00 on valuation and lack of near-term catalysts.

Analyst Michael Pachter commented, "Outerwall remains a value stock, but a lack of near-term catalysts pushes us to the sidelines for now. Returning free cash flow to investors remains a priority, with its quarterly dividend and a renewed focus on reducing debt. While Outerwall has a share repurchase plan in place and utilized it extensively over the recent past, we do not anticipate further share repurchases through 2017 given activist shareholder pressure to focus on reducing debt. We expect the company to continue to drive shareholder value; however we do not see any near-term catalysts that will drive shares higher until Q4 2016. We think DVD rentals will likely be under pressure from the upcoming Olympics in the interim."

For an analyst ratings summary and ratings history on Outerwall Inc. click here. For more ratings news on Outerwall Inc. click here.

Shares of Outerwall Inc. closed at $46.91 yesterday.

You May Also Be Interested In

• JPMorgan Downgrades Monster Beverage (MNST) to Neutral, 'Cost Pressures and Weaker Low-end Consumer'
• Macquarie Upgrades ASM Pacific Technology (522:HK) (ASMVY) to Outperform
• Keefe, Bruyette & Woods Upgrades Trustmark (TRMK) to Outperform