Wedbush Securities Reiterates Outperform Rating, $88 PT on Coinstar

In a report published Monday, Wedbush Securities reiterated its Outperform rating and $88.00 price target on Coinstar CSTR. Wedbush noted, “We expect results to exceed our estimates for revenue of $575 million, compared to consensus of $561 million and guidance of $550 – 575 million, and for EPS of $1.25, compared to consensus of $1.16 and guidance of $1.09 – 1.24. Q3 guidance implies revenue growth of 18 – 24%, which appears conservative given the 20% price increase for standard DVD rentals implemented in Q4:11, kiosk growth (we estimate 16% y-o-y), and Netflix attrition (an estimated 0.59 – 0.89 million DVD subs lost in Q3). Further, we estimate solid box office for Q3 DVD releases of up 9% despite an impact from the Olympics.” Coinstar closed on Friday at $43.83.