B. Riley Caris Says Might Be Time to Buy Coinstar on Weakness
B. Riley Caris analyst Eric Wold believes Coinstar's (NASDAQ: CSTR) management change will likely not have a significant impact on strategy or future outlook.
Coinstar announced late Thursday evening CEO Paul Davis would be stepping down on March 31, to be replaced by CFO Scott Di Valerio. The company also it expects Q4 earnings to be at or above the high end of its previously-issued ranged.
Wold's earlier note confirmed Coinstar's forecast shows Redbox rental trends are recovering in the quarter. Wold admitted the management shake-up news was "somewhat disappointing," but pointed out the company has hired "well ahead" of the current growth growth. The analyst attributed the downward pressure on the stock this morning to concerns over the companies' future strategy and "potential misinterpretation of the guidance wording."
Wold said he would buy on any weakness. The analyst rates Coinstar shares a Buy with a potential upside as high as $80 per share.
In mid-day trading, Coinstar shares are down 5.36% to $49.19.
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