Cinemark Holdings (CNK) was praised by Barrington, which upgraded CNK stock after the company reported strong earnings for Q3. The movie theater chain looks primed to continue this winning streak after being upgraded from a Market Perform rating to an Outperform. Analyst James Gross also increased this Cinemark price target from $28 to $36, implying 21% upside potential.
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What’s Happening with Cinemark Stock?
Although bullish sentiment toward Cinemark is rising, CNK stock is falling today on negative market momentum. As of this writing, it is down 2%, although its trading has stabilized after dipping this morning. While the stock is currently struggling, that doesn’t change the fact that Cinemark has enjoyed a year of significant growth, rising 80% and shaking off market volatility.
This performance shows that it is likely the strongest company in the movie theater space. iMax Corporation (IMAX) has performed well but is only up 32% for the year. And fellow theater chain AMC Entertainment (AMC) has spent most of the year gradually trending downward, falling 55% while its rivals have been rising. It seems unable to rise above the penny stock line, likely rendering most investors unable to take it seriously.
Meanwhile, Cinemark just reported record Q3 revenue of $922 million, an increase of 5% from last year’s. Its net income of $189 million indicates that while demand for movie theaters is still robust, consumers are choosing to patronize Cinemark theaters, even while AMC and Regal Cinemas maintain household name status.
Is Cinemark Stock a Buy, Sell, or Hold?
Wall Street is overall bullish on Cinemark. Analysts have a Moderate Buy consensus rating on CNK stock based on seven Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After an 80% rally in its share price over the past year, the average CNK price target of $30.90 per share implies 3.4% upside potential.
By contrast, AMC has a Moderate Sell consensus, with three Sells and no Buy or Hold ratings. It is rare for a meme stock to have that many analyst takes, but the stark opposite sentiment toward AMC makes it clear that Cinemark is Wall Street’s pick among movie theater stocks.
