Citi Bumps Up Blockbuster

Shares surge the day after a price cut.
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Blockbuster (BBI) - Get Report soared 10% in heavy trading Wednesday after Citi upgraded the stock a day after the struggling movie-rental chain's latest price cut.

Citi raised the Dallas-based company's stock to buy from hold, saying the price cut might make it easier for Blockbuster to raise prices on its Total Access program.

Blockbuster rolled out the program in a bid to take customers from rival

Netflix

(NFLX) - Get Report

. Total Access allows Blockbuster customers renting DVDs online to return them to the company's stores and receive a free in-store rental.

The program has expanded Blockbuster's losses, but Citi expects the decision to pay off in expanded market share.

On Wednesday, Blockbuster rose 38 cents to $4.33, and Netflix slumped $1 to $19.08.