Coinstar Benefits from Netflix’s Problems
Netflix’s (NASDAQ:NFLX) recent problems have worked in favor of Redbox, a subsidiary of Coinstar (NASDAQ:CSTR). Apparently, pricing changes of DVD-by-mail for Netflix have resulted in improved business for Redbox. This may continue when further changes are implemented by Netflix in the near future.
The analysis was revealed today in a report by Piper Jaffray, who wrote, “Coinstar remains our top small cap pick and we expect Redbox usage will benefit from Netflix (NASDAQ:NFLX) changes starting in the Dec-11 quarter.” The firm has reconfirmed its Overweight rating on Coinstar and maintains a price target of $68.
CSTR (NASDAQ:CSTR) is trading at $51.39 today, up 3.11%. Shares are up 12.63% in one year. The stock’s trading range for the year is between $37.43 and $67.56.