Analyst Benjamin Swinburne from Morgan Stanley maintained a Buy rating on Cinemark Holdings and keeping the price target at $35.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Benjamin Swinburne has given his Buy rating due to a combination of factors that suggest a positive outlook for Cinemark Holdings. He anticipates a significant recovery in the box office, projecting a 15-20% compound annual growth rate in adjusted EBITDA from 2024 to 2026. This growth is expected as the box office continues to rebound, which should enhance Cinemark’s financial performance.
Furthermore, Swinburne foresees a substantial increase in free cash flow per share, potentially doubling from 2025 to 2027, if the company leverages its capacity to repurchase shares. The analyst also highlights the potential for Cinemark to raise its dividend and increase share buybacks, driven by strong free cash flow generation and favorable tax reforms. Overall, Swinburne sees a 35% upside to his 12-month price target, with a potential 55% upside in a more optimistic scenario, without needing a full recovery to pre-pandemic ticket sales levels.
In another report released today, Roth MKM also maintained a Buy rating on the stock with a $34.00 price target.