Digest: Netflix soars; Tribune jumps
EmptyNetflix soars on earnings news
Shares of Netflix jumped 13% on Tuesday to $26 on higher-than-expected earnings. The gain made the stock the biggest gainer on The Hollywood Reporter Showbiz 50 stock index. The online DVD rental service Monday also raised its fourth-quarter outlook. Several analysts raised their price targets for the stock Tuesday, but some expressed longer-term concerns. Lehman Bros. analyst Douglas Anmuth increased his price target from $17 to $24. Banc of America Securities analyst Brian Pitz worried that an increase in video-download technology and development spending might put pressure on Netflix's 2008 results, so he kept his "neutral" rating for the stock but raised his target price from $17 to $22.
Tribune jumps on upgrade
Tribune shares rose 4.4% on Tuesday to $27.55 after a Barrington Research Associates analyst upgraded the media company, citing its attractive price as a chance to capitalize on Tribune's proposed buyout. The company, which agreed to an $8.2 billion buyout this year by real estate mogul Sam Zell, has faced increased speculation that the deal might fall through. However, analyst James Goss said Tribune's current price discounts risk of the proposed transaction collapsing.
Image shareholders clear sale
Image Entertainment said Tuesday that its shareholders voted to approve the company's sale to BTP Acquisition. The deal is expected to close by Nov. 6. At a special meeting in Los Angeles, stockholders voted to adopt an amended agreement that will give them $4.68 per share in cash. In March, Image agreed to be acquired by BTP for $95 million, or $4.40 per share. BTP is known as the owner of film firm ThinkFilm, as well as U.K.-based Capitol Entertainment. Image shares rose fractionally to $4.45 after going as high as $4.47, a 52-week high.