Janney Montgomery Scott Downgrades Blockbuster (BBI) to Neutral
BBI Hot Sheet
Rating Summary:0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Janney Montgomery Scott downgrades Blockbuster (NYSE: BBI) from Buy to Neutral.
Janney analyst says, "We are downgrading BBI to NEUTRAL on concerns that: 1) incremental market share losses are negating restructuring improvements; 2) incremental EBITDA pressures will
reignite debt/balance sheet concerns; and 3) the loss of pivotal cash flows in 4Q09 will weigh on enterprise valuation. We still view BBI as a restructuring play that will unlock value to equity holders as enterprise value is transferred from debt holders to equity holders through debt pay downs and asset sales; however, the aforementioned issues increase risk and impair BBI's capacity for balance sheet estimates do not sum to annual due improvements. Based on our lower share count estimates, we derive a new fair value estimate of $0.75."
To see all the upgrades/downgrades on shares of BBI, visit our Analyst Ratings page.
Blockbuster Inc. (Blockbuster) operates and franchises entertainment-related stores in the United States and a number of other countries.
Janney analyst says, "We are downgrading BBI to NEUTRAL on concerns that: 1) incremental market share losses are negating restructuring improvements; 2) incremental EBITDA pressures will
reignite debt/balance sheet concerns; and 3) the loss of pivotal cash flows in 4Q09 will weigh on enterprise valuation. We still view BBI as a restructuring play that will unlock value to equity holders as enterprise value is transferred from debt holders to equity holders through debt pay downs and asset sales; however, the aforementioned issues increase risk and impair BBI's capacity for balance sheet estimates do not sum to annual due improvements. Based on our lower share count estimates, we derive a new fair value estimate of $0.75."
To see all the upgrades/downgrades on shares of BBI, visit our Analyst Ratings page.
Blockbuster Inc. (Blockbuster) operates and franchises entertainment-related stores in the United States and a number of other countries.
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