Crazy Citi Still Flogging Blockbuster. Now It's Even a "Top Pick"

Citi has been banging the drum on Blockbuster (BBI) since the Circuit City (CC) news. While most everyone else hates the deal, Citi believes the negativity is making the stock a great buy.

We like the contrarian instinct, but we think Citi’s wrong on this one: We don’t buy the “digital media one-stop shop” concept, and we think a dying Blockbuster is just casting around for a lifeline. It may be that Circuit City’s leases and land may be worth something in a liquidation, but that’s not what Citi’s so jazzed about.

Citi thinks BBI is headed to at least $8 and possibly $11 if the Circuit City acquisition occurs. Citi thought Blockbuster’s Q1 was generally positive, with signs of restructuring improvement. They reiterated their BUY and added the stock to their TOP PICKS LIVE list.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at