Barrington analyst James Goss has reiterated their bullish stance on CNK stock, giving a Buy rating on February 13.
James Goss’s Buy rating for Cinemark Holdings is based on a variety of optimistic indicators for the company’s future performance. In particular, he notes the promising volume of film releases expected beyond 2024 despite the challenges of the current year. Cinemark’s management has expressed confidence in a strong recovery for 2025, anticipating a return to release volumes that could approach those seen in pre-pandemic years. This expectation is based on studios’ continued commitment to theatrical releases, which is crucial for Cinemark’s business model. Moreover, there’s a notable improvement in consumer interest in moviegoing as the industry adapts to post-strike conditions and streaming companies show greater support for theatrical windows.
Financially, Cinemark has outperformed the industry in terms of revenue recovery, reaching close to 2019 levels, with a strong fourth quarter performance that beat consensus expectations. Despite a reduction in the number of theaters, the company has managed to increase its share of the box office and has seen growth in other revenue streams such as concessions. Goss points out Cinemark’s strong financial position, its ability to pay down debt accrued during the pandemic, and its leadership within the industry in navigating challenges. These factors, along with the company’s significant market presence in Latin America, contribute to the reaffirmed OUTPERFORM rating and an optimistic price target that suggests a substantial upside potential.
In another report released on February 13, Wedbush also reiterated a Buy rating on the stock with a $20.00 price target.
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Cinemark Holdings (CNK) Company Description:
Cinemark Holdings, Inc. is a holding company, which engages in the provision of motion picture exhibition through its subsidiaries. It operates through the U.S. and International segments. The company was founded by Lee Roy Mitchell in 1984 and is headquartered in Plano, TX.
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