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JPMorgan downgrades Coinstar (CSTR) to Underweight from Neutral from Underweight with a $51...

JPMorgan downgrades Coinstar (CSTR) to Underweight from Neutral from Underweight with a $51 price target lined up on shares. CSTR -2.9% premarket.
Comments (2)
  • FairviewCap
    , contributor
    Comments (59) | Send Message
     
    Pretty "eh" commentary from the JPM analyst. I would suggest discounting his mention of "heavy cap-ex growth strategy". CSTR can drastically reduce cap-ex well beyond what the street thinks, which would have a significant positive impact on performance. Additionally, redbox (dvd kiosks) capex reduction is something that is already on mgmt's agenda and is in motion. This downgrade is more likely driven by an attempt to service some of JPM's larger brokerage accounts by reducing risk in a number of portfolio balance sheets, as opposed to a valuation issue.
    19 Feb 2013, 12:33 PM Reply Like
  • FairviewCap
    , contributor
    Comments (59) | Send Message
     
    i.e. given Kynikos & co. a chance to cover.
    19 Feb 2013, 01:52 PM Reply Like
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