BBI Posts In-Line Q1 Results; Offers Challenging Outlook

Analysts at Wedbush Morgan maintain their "neutral" rating on Blockbuster BBI, while reducing their estimates for the company. The target price for BBI is set to $0.75. BBI posted Q1 results in-line with the expectations. BBI again has not issued “forward guidance except to say that the next 12 to 18 months will be challenging.” The analysts say, “We continue to believe upside potential for the stock is limited near-term until the company can stabilize its sales, improve profitability, and answer questions around its ability to service a crippling debt load (which it will again warn in its 10-Q).” Wedbush Morgan has lowered its EPS estimates for FY10 from -$0.33 to -$0.82. More Analyst Ratings here