Piper Jaffray Maintains Overweight Rating For Coinstar Inc. (CSTR)

Analysts Michael J. Olson and Andrew H. Murphy at Piper Jaffray have released an update on Coinstar, Inc. (NASDAQ: CSTR). Coinstar has announced deals that involve a 28-day delay for new releases with Warner Bros., Fox, and Universal.

In order to gauge the impact of these deals, analysts surveyed 50 Redbox users and found that only 20% of users went to Redbox looking for a specific title and just 5% of customers surveyed had a specific title in mind, did not find that title and left without renting. Analysts estimate a 5% negative impact on revenue due to the 28-day delay. However, this will be offset by cost savings of 10%-20%.

Analysts at Piper Jaffray have maintained their Overweight rating and $62 price target for Coinstar, Inc.