Wedbush Morgan 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
Wedbush Morgan downgrades Blockbuster Inc. (NYSE: BBI) from Outperform to Neutral, citing pressure from Redbox on one side and from creditors on the others.
The firm said upside potential for the stock is limited near-term until the company is able to restructure its heavy debt burden. The firm commented, "The company is presently buffeted by a confluence of negative forces—slowing customer traffic, increasing competition and costlier debt. As pressure from Coinstar's (Nasdaq: CSTR) Redbox DVD rental kiosks intensifies, Blockbuster’s profitability is eroding precisely when it needs to generate sufficient free cash flow to retire a large amount of debt in 12 – 16 months."
Shares of BBI are down 14% today to $0.74 per share.
The firm said upside potential for the stock is limited near-term until the company is able to restructure its heavy debt burden. The firm commented, "The company is presently buffeted by a confluence of negative forces—slowing customer traffic, increasing competition and costlier debt. As pressure from Coinstar's (Nasdaq: CSTR) Redbox DVD rental kiosks intensifies, Blockbuster’s profitability is eroding precisely when it needs to generate sufficient free cash flow to retire a large amount of debt in 12 – 16 months."
Shares of BBI are down 14% today to $0.74 per share.
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