Blockbuster a 'Top Pick' - Citi

Blockbuster (BBI) shares are getting a lift today from Citigroup’s Tony Wible, who raised his price target on the stock to $8.50 from $8 and added the stock to the firm’s “Top Picks Live” list.

Wible writes that the company’s Q1 results reported yesterday provide evidence that the company’s turnaround is bearing fruit. He writes that that company has produced improvement in inventory management, raised prices for its Total Access service and cut costs. He also repeated his view that the company’s proposed acquisition of Circuit City (CC) would “provide cost synergies and help BBI become an open provider of technology and content.”

His bottom line view: “Investors believe BBI is operating a broken business model due to technology changes in the rental industry,” he writes. “We see BBI adapting to this change and becoming one of the best positioned companies to offer consumers movie and game content in a newmulti-channel environment that few other companies will be able to match.” He repeated his Buy rating on the stock.

BBI this morning is up 16 cents, or 5.3%, to $3.21.

Comments

[Alpha Seeker]

I just don't see it yet, and the charts are not showing anything going towards the prices aboe. Citi's analysts or most analyst in general, are just kids; most of the time they went to business school in order to impress their friends, not because they had any understanding of the industry or predictive power. So any analyst saying the price should be $8 is like saying it will snow in FL. Until it does it will be difficult to believe it.
I'd rather read the
wallastoninvestments.c.../