Blockbuster: Lower Price Target for the Media Retailer (NYSE: BBI)
February 25, 2010 4:41 PM
Jeffrey B. Logsdon, an analyst at BMO Capital Markets Corp, is lowering the 9-15 month price target for (NYSE: BBI) from $0.40 to $0.30. This target price decrease comes after a lower than expected EPS loss of $0.24 was reported for the 4Q09.
“Risks to our target include debt default, a faster-than-expected decline in home video-rental business from poor rental product or substitute leisure activities, failure to attract or retain customers (in store or online), competitive inroads by other distribution technology, lower cost providers of packaged media, an NYSE delisting, acceleration of debt repayment, public health, geo-political events, and general market conditions. Risks to the upside include a sale of international assets for a price that could meaningfully reduce debt,” stated Logsdon.
Shares of BBI are trading in a 52 week range of $0.13 to $1.56. Based on the recent numbers posted, restructuring is looking to be a viable option for Blockbuster.
