UPDATE: DA Davidson Raises Target to $75 on Coinstar
DA Davidson reiterates its Buy rating on Coinstar (NASDAQ: CSTR) and raises its price target to $75 from $70 a share on the company's improved competitive position.
DA Davidson says, "We suspect concerns about price increase-driven attrition and Durbindriven transaction price pressure will be replaced with speculation about how accretive the Blockbuster Express acquisition and the new joint venture with Verizon will be. At the end of the day, the company's competitive positioning has improved. The DVD format remains the lowest price rental option and the new digital partnership should help retain attrition previously expected to shift to streaming. We believe numbers and share multiples will move up in 2012."
CSTR closed at $50.56 a share on Tuesday.
