The analyst firm lowered its price target for the company to $76 from $100. It may be difficult for Outerwall to increase the revenue generated by Redbox according to analyst Eric Wold. The analyst noted that changes to consumer behavior will have a negative impact on the movie rental kiosks over time. Outerwall may have trouble increasing its profit margins for Redbox according to Wold.
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Separately, TheStreet Ratings team rates OUTERWALL INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OUTERWALL INC (OUTR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows: