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
. 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.