Mike Hickey, an analyst from Benchmark Co., reiterated the Buy rating on Cinemark Holdings. The associated price target remains the same with $35.00.
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Mike Hickey has given his Buy rating due to a combination of factors that suggest a promising future for Cinemark Holdings. The potential sale of Warner Bros. Discovery (WBD) is seen as a positive development for theatrical exhibition, with both potential buyers indicating plans to increase film volume and maintain traditional theatrical windows. This is expected to lead to long-term growth in box office revenues and greater stability in the industry.
Furthermore, the outlook for the 2026 domestic box office (DBO) is optimistic, with an anticipated increase in release volume and a stronger presence of major franchises and high-profile original films. The projected growth in the number of wide releases and the emphasis on premium formats are expected to drive higher engagement and attendance. Additionally, the valuation of Cinemark Holdings, based on an 8x FY26 AEBITDA plus net cash, supports a price target of $35, reinforcing the Buy recommendation.
Hickey covers the Communication Services sector, focusing on stocks such as IMAX, Genius Sports Limited, and Cinemark Holdings. According to TipRanks, Hickey has an average return of 2.4% and a 55.47% success rate on recommended stocks.