Shares of Outerwall (NASDAQ: OUTR) have fallen over six seven percent following a B. Riley downgrade from Buy to Neutral and price target cut from $100.00 to $76.00.
B. Riley analyst Eric Wold highlighted that Outerwall's revenue growth could “face greater headwinds” amid “shifts in consumer business and changes in the movie rental industry.”
Even with a temporary fix in a potential Redbox price increase, Wold sees the company becoming a “value trap” with buybacks driving EPS growth.
Amid few and little gains from other investments, the analyst emphasized that Outerwall could have trouble increasing its profit margin.
Shares of Outerwall closed at $65.31 on Tuesday. The stock fell as much as seven percent to $60.78 on Wednesday. Shares are currently trading at $61.12.
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