Piper Jaffray Maintains Overweight Rating For Coinstar Inc. (CSTR)

Analysts Michael J. Olson and Andrew H. Murphy at Piper Jaffray have released an update on Coinstar, Inc. CSTR. Coinstar has announced deals that involve a 28-day delay for new releases with Warner Bros., Fox, and Universal. In order to gauge the impact of these deals, analysts surveyed 50 Redbox users and found that only 20% of users went to Redbox looking for a specific title and just 5% of customers surveyed had a specific title in mind, did not find that title and left without renting. Analysts estimate a 5% negative impact on revenue due to the 28-day delay. However, this will be offset by cost savings of 10%-20%. Analysts at Piper Jaffray have maintained their Overweight rating and $62 price target for Coinstar, Inc.