Analyst Mike Hickey of Benchmark Co. maintained a Buy rating on Cinemark Holdings (CNK – Research Report), retaining the price target of $35.00.
Mike Hickey has given his Buy rating due to a combination of factors that highlight Cinemark Holdings’ potential for growth and profitability. The company is focused on strategic pricing and enhanced concession offerings, which are expected to drive modest growth in ticket prices and per-capita spending. This, combined with the recovery in box office attendance and revenue, positions Cinemark for margin expansion through increased spending and premium ticket sales.
Furthermore, the outlook for film supply is promising, with a significant number of wide releases anticipated and major players like Amazon MGM and Apple investing in theatrical content. This improved film slate, along with the growing importance of alternative content, suggests Cinemark is well-placed to capture market share. Additionally, the company’s financial strategies, including the repayment of convertible notes and plans to enhance shareholder returns through dividends and buybacks, further support the Buy rating by indicating a strong commitment to maintaining financial health and delivering value to shareholders.
In another report released on February 20, Morgan Stanley also reiterated a Buy rating on the stock with a $35.00 price target.