Dougherty & Co Raises Price Target on Coinstar (CSTR) But Remains Skeptic on Redbox Outlook
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Price: $20.10 --0%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Dougherty & Co is maintaining its Neutral rating on shares of Coinstar (NASDAQ: CSTR), but is raising its price target from $55 to $60 following solid Q4 results.
The company reported strong Q4 results and offered solid Q1 and FY12 guidance, which was above the firm's original expectations.
To go inline with the company's new guidance and recent business trends, the firm is raising its Q1 sales and EPS estimate from $503.4 million and $0.64 to $537.4 million and $0.80. Dougherty is also raising its FY12 estimates from $2.151 billion and $3.60 to $2.236 billion and $4.10.
An analyst at Dougherty comments, "We have to give management credit for putting up a very nice fourth quarter. Still, we are concerned that Redbox remains a volatile, title-driven business that is hard to predict. Adding to the difficulty is the Q1 transition of Warner titles, as the company has ended its relationship with the studio and product is now sourced through alternative channels. With the Universal contract up for renewal in April, the company may walk away from that relationship as well if forced to accept a window greater than the current 28 days."
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 company reported strong Q4 results and offered solid Q1 and FY12 guidance, which was above the firm's original expectations.
To go inline with the company's new guidance and recent business trends, the firm is raising its Q1 sales and EPS estimate from $503.4 million and $0.64 to $537.4 million and $0.80. Dougherty is also raising its FY12 estimates from $2.151 billion and $3.60 to $2.236 billion and $4.10.
An analyst at Dougherty comments, "We have to give management credit for putting up a very nice fourth quarter. Still, we are concerned that Redbox remains a volatile, title-driven business that is hard to predict. Adding to the difficulty is the Q1 transition of Warner titles, as the company has ended its relationship with the studio and product is now sourced through alternative channels. With the Universal contract up for renewal in April, the company may walk away from that relationship as well if forced to accept a window greater than the current 28 days."
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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