Benchmark Co. analyst Mike Hickey reiterated a Buy rating on Marcus today and set a price target of $25.00.
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Mike Hickey has given his Buy rating due to a combination of factors that highlight Marcus Corp.’s potential for growth and value. The company has shown a strong performance in the box office, surpassing previous expectations, which has led to an increase in sales and AOIBDA estimates. Despite some underperformance in the theatrical segment compared to peers, strategic pricing decisions aimed at boosting attendance and long-term customer loyalty are expected to pay off.
Additionally, Marcus’s hotel segment is seen as stable and resilient, with renovations expected to drive stronger performance in the latter half of 2025. The company’s valuation appears disconnected from its fundamentals, offering a significant discount despite its favorable positioning in both the film and hotel sectors. With an anticipated normalization of capital expenditures and a strong free cash flow outlook, Marcus is positioned as a compelling investment opportunity. The reiteration of a Buy rating is supported by a robust cash flow story and an attractive valuation, with a maintained price target of $25.
According to TipRanks, Hickey is a 5-star analyst with an average return of 5.5% and a 63.03% success rate. Hickey covers the Communication Services sector, focusing on stocks such as National Cinemedia, Electronic Arts, and Take-Two.