Loading...
Loading...
In a report published Monday, B. Riley & Co. analyst Eric Wolf downgraded the rating on
OuterwallOUTR from Neutral to Sell, and lowered the price target from $54.00 to $47.00.
In the report, B. Riley & Co. noted, “While we have expressed concerns around studio content agreement renewals and margin risk for Outerwall's Redbox division into 2015, recent events and activity have clearly increased the possibility that our concerns become reality. In our opinion, the combination of seemingly unrestrained promotional activity, studios likely to pressure Redbox for better terms and a customer base unlikely to be unreceptive to rental price hikes is more than likely to drive Redbox margins lower than our current projection starting in 2015. With these heightened concerns, we are downgrading Outerwall from Neutral to Sell and lowering our price target from $54.00 to $47.00.”
Outerwall closed on Friday at $58.49.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in