UPDATE: B. Riley & Co. Downgrades Outerwall to Sell, Lowers PT on Heightened Concerns

In a report published Monday, B. Riley & Co. analyst Eric Wolf downgraded the rating on

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.