Benchmark Raises Price Target on Coinstar (CSTR) Following Q4 Results and Recent Acquisition
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Price: $20.10 --0%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 5 | New: 17
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Benchmark is reiterating its Buy rating on shares of Coinstar (NASDAQ: CSTR) as the company reported its Q4 results ahead of expectations. The firm also raised its price target on the company from $70 to $75.
The upside for the quarter was driven by continued growth and market share gains of the DVD kiosk business and lower than expected operating
costs, reports the firm. Revenues rose 33.2 percent over the quarter.
An analyst at Benchmark comments, "With redbox now the most popular physical DVD rental company, Verizon (NYSE: VZ) teamed up with redbox to form a joint venture to offer streaming video. While redbox’s share of the joint venture start-up loss is expected to be $19 million this year, we believe this could be a growth vehicle in the future. Redbox has also entered into an agreement to acquire certain assets of NCR’s entertainment line of business. NCR’s Blockbuster Express kiosks had been the only serious competitor to redbox,"
For Q1 and FY12, the firm forecasts EPS of $0.88 and $4.09. Benchmark also released its FY13 earnings estimate at $4.71. Total sales for FY12 and FY12 are forecasted to be $398 million and $453.1 million.
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 $50.56 yesterday.
The upside for the quarter was driven by continued growth and market share gains of the DVD kiosk business and lower than expected operating
costs, reports the firm. Revenues rose 33.2 percent over the quarter.
An analyst at Benchmark comments, "With redbox now the most popular physical DVD rental company, Verizon (NYSE: VZ) teamed up with redbox to form a joint venture to offer streaming video. While redbox’s share of the joint venture start-up loss is expected to be $19 million this year, we believe this could be a growth vehicle in the future. Redbox has also entered into an agreement to acquire certain assets of NCR’s entertainment line of business. NCR’s Blockbuster Express kiosks had been the only serious competitor to redbox,"
For Q1 and FY12, the firm forecasts EPS of $0.88 and $4.09. Benchmark also released its FY13 earnings estimate at $4.71. Total sales for FY12 and FY12 are forecasted to be $398 million and $453.1 million.
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 $50.56 yesterday.
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