Citi Reiterates 'Buy' Rating on Blockbuster (BBI), Increases Price Target

May 16, 2008 9:55 AM EDT

Citi reiterates a 'Buy' rating on Blockbuster (NYSE: BBI). Price target increased from $8 to $8.50.

Citi analyst says, "BBI reported 1Q08 EPS of $0.19 topping the $0.15 consensus. These results provide evidence that BBI's turnaround efforts are bearing fruit and are largely attributable to better: 1) inventory management, 2) product placement, 3) Total Access terms, and 4) cost savings...While BBI can create value with or without a Circuit City (NYSE: CC) merger, the deal would provide cost synergies and help BBI become an open provider of technology and content. The street's overly bearish view of the deal creates an attractive risk/reward opportunity...The company's five point distribution plan is taking shape with: 1) the in store "Rock the Block" concepts (500 stores in 2008), 2) better download integration, and 3) a planned roll out of download kiosks within 6-12 months."

Blockbuster Inc. (Blockbuster) is a global provider of rental and retail movie and game entertainment, with over 7,800 stores in the United States, its territories and 21 other countries as of January 6, 2008.

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Citi

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?