In a report released today, Mike Hickey from Benchmark Co. reiterated a Buy rating on Cinemark Holdings, with a price target of $35.00.
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Mike Hickey has given his Buy rating due to a combination of factors that suggest strong future performance for Cinemark Holdings. The company has shown impressive growth in domestic admissions, significantly surpassing previous estimates, which has led to a positive revision in revenue and AEBITDA forecasts. This growth is supported by favorable market conditions, including a premium mix and strategic pricing initiatives that have bolstered concession sales per patron.
Furthermore, Cinemark is well-positioned to capitalize on the normalization of film release schedules and the increasing consumer interest in theatrical experiences. The entrance of Amazon MGM into wide distribution and the return of blockbuster films are expected to drive further growth. Despite some challenges, such as FX headwinds and tough comparisons in the Latin American market, the company’s operational excellence and strategic capital allocation provide a strong foundation for margin recovery and earnings growth. With these factors in mind, Hickey sees scalable upside potential for Cinemark as the film industry continues to recover.
Hickey covers the Communication Services sector, focusing on stocks such as National Cinemedia, IMAX, and Take-Two. According to TipRanks, Hickey has an average return of 5.2% and a 63.03% success rate on recommended stocks.