Tim Casey, an analyst from BMO Capital, maintained the Hold rating on Cineplex. The associated price target is C$13.00.
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Tim Casey’s rating is based on a combination of factors including Cineplex’s recent financial performance and future prospects. While the company’s Q2 revenues slightly exceeded expectations, its EBITDAaL fell short by approximately $5 million, and earnings per share also missed the mark. This mixed financial performance suggests some challenges in the near term, particularly as the momentum from the box office is expected to slow in Q3 due to a decrease in the volume of premium releases.
Despite these challenges, there are positive indicators for the future. Cineplex has initiated a restructuring program aimed at achieving significant annual savings, and the outlook for Q4 and 2026 appears more promising with a stronger slate of film releases. Additionally, the company has signed a long-term agreement to expand its digital signage network, which could enhance its revenue streams. These factors contribute to a cautious but hopeful outlook, justifying the Hold rating.
Casey covers the Communication Services sector, focusing on stocks such as Rogers Communication, Cineplex, and BCE. According to TipRanks, Casey has an average return of 7.6% and a 61.76% success rate on recommended stocks.
In another report released on August 12, Canaccord Genuity also downgraded the stock to a Hold with a C$11.00 price target.