Scalper1 News
With DVD movie rentals in decline, Redbox and its parent company Outerwall are going to take a hit, a new report says. Pacific Crest Securities analyst Andy Hargreaves called Outerwall (OUTR) “significantly overvalued” in a research report Tuesday. He rates the stock as underperform. “Total DVD/Blu-ray rental volume in the U.S. has declined for six consecutive years,” Hargreaves wrote. “We have found no physical format in the past 40 years that has stabilized after five or more consecutive years of decline, which makes a stabilization at Redbox seem highly unlikely.” He estimates that Outerwall stock has a fair value of 33, based on a scenario of relatively stable 10% annual declines in rental volume. Outerwall stock hit an all-time high of 74.30 on March 7. In afternoon trading, Outerwall was down a fraction just above 59. In the first quarter, Redbox DVD rental kiosks accounted for about 86% of Outerwall’s… Scalper1 News
Scalper1 News