J.P. Morgan Reports Better Than Expected Earnings From Coinstar

J.P. Morgan has an Underweight rating and a $42 price target on shares of Coinstar CSTR In a note to clients, J.P. Morgan writes, “We are raising estimates. Longer term, we are concerned that the U.S. DVD kiosk growth opportunity might peak in 2011 -2012 owing to rapid adoption of online video services (ref. Netflix 23mm US subscribers). On the flip side, the argument that NFLX's shift of focus to streaming (older content) may present an additional market share opportunity for Coinstar seems plausible in near to mid term.” Shares of CSTR closed at 51.41 yesterday.