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Cineplex ( (TSE:CGX) ) has issued an update.
Cineplex said the Federal Court of Appeal has upheld the Competition Tribunal’s September 2024 ruling over the company’s presentation of its online booking fee, including a $39 million administrative monetary penalty. The company stated it disagrees with the decision, maintains that its online booking fee has always been clearly and prominently disclosed in compliance with the law, and announced it will seek leave to appeal the case to the Supreme Court of Canada, extending a high-profile legal battle with potential financial and reputational implications for the theatre operator and its digital pricing practices.
The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.
Spark’s Take on TSE:CGX Stock
According to Spark, TipRanks’ AI Analyst, TSE:CGX is a Neutral.
Cineplex’s overall stock score reflects significant financial and technical challenges. The company’s high leverage and negative profitability metrics weigh heavily on its financial performance score. Technical analysis indicates bearish momentum, further impacting the score. Valuation concerns, with a negative P/E ratio, also contribute to the low score. While the earnings call provided some positive insights, such as growth in premium experiences, these are not enough to offset the broader challenges.
To see Spark’s full report on TSE:CGX stock, click here.
More about Cineplex
Cineplex (TSX: CGX) is a leading Canadian entertainment and media company operating across film entertainment and content, amusement and leisure, and media. It runs 171 movie theatres and location-based entertainment venues nationwide and owns brands such as The Rec Room, Playdium, and Cineplex Junxion, while also operating cinema media, alternative programming, and motion picture distribution businesses. Cineplex is a partner in the Scene+ loyalty program and employs more than 10,000 people across Canada.
Average Trading Volume: 277,718
Technical Sentiment Signal: Strong Sell
Current Market Cap: C$650.9M
See more insights into CGX stock on TipRanks’ Stock Analysis page.