Piper Jaffray Overweight On Coinstar

Piper Jaffray has an Overweight rating and a $68 price target on shares of Coinstar Inc. CSTR. In a note to clients, Piper Jaffray writes, "We believe that recent changes in the competitive landscape of the DVD rental business will provide tailwinds for Redbox over the next several quarters. First, Netflix announced yesterday (7/12) that it is raising the price of a DVD (one at a time) & streaming combination from $9.99 to $15.98. Also, NCR, operator of the Blockbuster Express DVD kiosks, recently indicated that it is exploring strategic alternatives for its entertainment business, which we believe may include exiting the business. We see these two pieces of news as tailwinds for the Redbox business in the coming quarters, both reducing the competitive threat from key alternatives to Redbox DVD rentals and could result in Redbox share gains." Shares of CSTR gained $1.98 yesterday to close at $57.38, a gain of 3.57%.