Barrington analyst Patrick Sholl has maintained their bullish stance on NCMI stock, giving a Buy rating today.
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Patrick Sholl has given his Buy rating due to a combination of factors that highlight National CineMedia’s potential for growth and profitability. Despite a challenging second quarter with revenue and profitability below expectations, the company has provided optimistic guidance for the third quarter, projecting mid-single-digit revenue growth. This is supported by a more robust film slate and a favorable box office environment, which are expected to drive advertiser demand.
Additionally, the renewal with AMC enhances the company’s ability to offer a unified advertising platform, increasing its appeal to advertisers and potentially boosting revenue. The adoption of programmatic advertising and a self-serve platform is also expanding NCM’s advertiser base, allowing it to tap into programmatic budgets. The company’s strong presence in larger markets and its ability to attract younger audiences make it an attractive platform for advertisers. With a solid dividend yield and a significant share repurchase authorization, NCM is well-positioned to deliver value to shareholders.
In another report released today, Benchmark Co. also maintained a Buy rating on the stock with a $7.00 price target.