Piper Jaffray Revises Revenue and EPS estimates for Coinstar

Piper Jaffray has published a report on Coinstar Inc CSTR raising guidance on the change collecting company. In the report, Piper Jaffray wrote, "After market close on 7/21, Coinstar announced mixed preliminary Q2 results (revenue miss, EPS beat) and raised FY11 guidance for both revenue and EPS. The company also announced the resignation of Redbox president Mitch Lowe, who will remain president until a successor is named. While Q2 revenue was weaker than expected, we believe Q3 & Q4 will benefit from multiple tailwinds, including an improving 2H title release schedule, launch of video games, Netflix plan pricing changes, and NCR potentially exiting the DVD kiosk business. While the revenue outlook is now slightly more back-end-loaded for the year, the EPS outlook is the opposite and may prove conservative. It is becoming increasingly clear that the ability of the company (and the Street) to accurately forecast the Redbox business for any given quarter is low and, therefore, we would encourage investors to focus on longer-term multi-quarter trends in the business." Piper Jaffray rated Coinstar at Overweight with a price target of $68.00. Coinstar closed Thursday at $58.63.