Blockbuster Stock Up After Analyst Raises Target Price

Forbes reports that Blockbuster are up after Citi analyst Tony Wible increased the target price from $7.25 to $8 per share.

He said Blockbuster has raised prices for non-subscribing customers at less than 10 percent of its stores. He thinks that increase, combined with this summer's strong box office results, will give the company more cash.

Blockbuster could also get an inadvertent boost from cable companies, Wible said, because they may be considering changing their pricing policies on movie downloads. If the companies charge users for each movie downloaded, instead of a flat fee, that will make movie downloads less attractive to customers.

Wible does not think economic conditions will hurt Blockbuster, as the chain's results are more closely tied to box office results. This summer was one of the strongest periods in history in terms of ticket sales.

Tony Wible didn't mention the $7 per month price increase for some Total Access customers, but I wonder if be believes that it will be offset by defections.

Comments

[kckid]

What a load of crap. Blockbuster is going to tank. I loved the total access, until it became a total bait and switch.

Moved over to Hollywood video for the $9.99 a month 3 out in store plan. Helps me catch up on all those slightly older movies I needed to watch.

Blockbuster took me from a $20 a weekend in store customer, then online and then a $0 a weekend customer. I'm sure that will raise the stock price. MORONS!

[type-cast]

I wonder if Blockbuster's stock will be down when users find they are denied free rentals at the beginning of their billing period. It happened to me the other day and the guy who was right ahead of me in line. They said you can get 5 free rentals a month, but they did not want to give me any this billing period. Anybody else having problems with their lame dishonesty and incompetence? The free movies should refresh at the beginning of your next billing period, but they are not doing so.

[ElHefe]

I left blockbuster due to the very underhanded way they switched their rental policy, and raised prices. I am sure many others left as well. I hope their stock goes down