Compass Point Cuts Price Target on Coinstar (CSTR)
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Price: $56.92 +2.10%
Rating Summary:
5 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
5 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade CSTR Now!
Compass Point reiterated their Neutral rating on Coinstar (NASDAQ: CSTR) and slashed the price target to $50.00 (from $60.00).
"After further reviewing 2Q12 results, we reiterate our Neutral rating and EPS estimates of $4.88 this year and $5.06 next year," Said Douglas Greiner, an analyst with Compass Point.
"Coinstar has been reporting rising Redbox market share metrics that at first thought appear to be a healthy indicator. However, dividing quarterly transactions by market share portrays the overall addressable market. While market share has been growing the addressable market opportunity has been shrinking. If the current trend continues Redbox will soon dominate the physical rental market but it may only be a fraction of the current size. We also continue to be cautious due to the weak 3Q new release outlook. Our $50 price target ($60 previously) equals 10x our estimate of this year's EPS," added Greiner.
For an analyst ratings summary and ratings history on Coinstar click here. For more ratings news on Coinstar click here.
Shares of Coinstar closed at $46.66 yesterday, with a 52 week range of $37.43-$71.82.
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"After further reviewing 2Q12 results, we reiterate our Neutral rating and EPS estimates of $4.88 this year and $5.06 next year," Said Douglas Greiner, an analyst with Compass Point.
"Coinstar has been reporting rising Redbox market share metrics that at first thought appear to be a healthy indicator. However, dividing quarterly transactions by market share portrays the overall addressable market. While market share has been growing the addressable market opportunity has been shrinking. If the current trend continues Redbox will soon dominate the physical rental market but it may only be a fraction of the current size. We also continue to be cautious due to the weak 3Q new release outlook. Our $50 price target ($60 previously) equals 10x our estimate of this year's EPS," added Greiner.
For an analyst ratings summary and ratings history on Coinstar click here. For more ratings news on Coinstar click here.
Shares of Coinstar closed at $46.66 yesterday, with a 52 week range of $37.43-$71.82.
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