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Janney Montgomery Scott Downgrades Blockbuster (BBI) to Neutral

January 21, 2010 7:18 AM EST Send to a Friend
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Price: $0.15 --0%

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    0 Buy, 0 Hold, 0 Sell

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    Up: 3 | Down: 4 | New: 7
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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.



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