Compass Point Reiterates a 'Neutral' on Coinstar (CSTR); Future May Bring Challenges
Tweet
Share
E-mailGet Alerts CSTR Hot Sheet
Price: $20.10 --0%
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 3
Rating Summary:
4 Buy, 11 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 16 | New: 3
Join SI Premium – FREE
Compass Point reiterates a 'Neutral' on Coinstar (NASDAQ: CSTR) price target of $70.00.
Analyst, Douglas Greiner, said, "Q1 marked the second consecutive quarter of meaningful strength for Redbox. However, we remain concerned that future growth will be challenged, given that (1) DVD discs are likely to become technologically obsolete, (2) market share has already increased dramatically to 38.7% and (3) the 35,400 Redbox kiosks already in operation are within a five-minute drive of nearly 70% of domestic households. As one of the last standing DVD-rental businesses that also claims the lowest price point, we caution investors that financial performance is inflated due to the lack of competition. We acknowledge that near-term financial performance can continue and forecast total revenue, EPS, and EBITDA compound annual growth rates of 18%, 26%, and 18% through 2013, respectively...Our EPS estimate for this year is now $4.80 ($4.60 previously) and our next year estimate of $5.15 is unchanged."
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 $67.51 yesterday.
Analyst, Douglas Greiner, said, "Q1 marked the second consecutive quarter of meaningful strength for Redbox. However, we remain concerned that future growth will be challenged, given that (1) DVD discs are likely to become technologically obsolete, (2) market share has already increased dramatically to 38.7% and (3) the 35,400 Redbox kiosks already in operation are within a five-minute drive of nearly 70% of domestic households. As one of the last standing DVD-rental businesses that also claims the lowest price point, we caution investors that financial performance is inflated due to the lack of competition. We acknowledge that near-term financial performance can continue and forecast total revenue, EPS, and EBITDA compound annual growth rates of 18%, 26%, and 18% through 2013, respectively...Our EPS estimate for this year is now $4.80 ($4.60 previously) and our next year estimate of $5.15 is unchanged."
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 $67.51 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Range Resources (RRC) PT Raised to $41 at Mizuho
- Intel (INTC) PT Lowered to $45 at Mizuho
- DA Davidson Starts Napco Security Technologies, Inc. (NSSC) at Buy
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS ViewSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
