Analyst Mike Hickey of Benchmark Co. reiterated a Buy rating on Cinemark Holdings, retaining the price target of $35.00.
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Mike Hickey has given his Buy rating due to a combination of factors that suggest a positive outlook for Cinemark Holdings. Despite a weaker-than-expected performance in the third quarter, largely due to a lackluster September slate, the company is positioned for a significant rebound in the fourth quarter. This is driven by a strong lineup of upcoming releases, including major titles like Avatar: Fire and Ash and Tron: Ares, which are expected to boost box office revenues and enhance Cinemark’s market position.
Furthermore, the industry is anticipated to experience substantial growth in 2026, with a slate of high-profile franchise installments and original films that could exceed pre-pandemic levels. This presents a multi-quarter opportunity for Cinemark to capitalize on increased attendance and market share. Additionally, Cinemark’s proactive measures to address financial risks, such as unwinding warrant overhangs, have improved its balance sheet clarity. These strategic moves, combined with a favorable valuation estimate, underpin Hickey’s confidence in maintaining a Buy rating for Cinemark Holdings.
In another report released on August 18, Morgan Stanley also reiterated a Buy rating on the stock with a $35.00 price target.