Piper Jaffray Overweight On Coinstar

Piper Jaffray is out with a research report on Coinstar Inc. CSTR and it has an Overweight rating and a $68 price target on shares. In a note to clients, Piper Jaffray writes, "Our analysis of DVDs released to Redbox in Q3 shows box office revenue of -1% y/y. We generally expect box office totals to be approximately flat y/y in any given quarter, so we see this as a neutral data point. However, box office trends are improving as we move through 2011; PJC estimates box office revenues up 5%, 5%, and 17% in calendar Q2, Q3, and Q4, respectively, vs. -9% y/y in Q1 (assuming Avatar was an average title). This improving title schedule will likely provide a tailwind for the Redbox business in 2H11 and into Q1'12 (DVDs typically release one quarter following the theatrical release)." Shares of CSTR lost 38 cents yesterday to close at $40.20.