In a report released yesterday, Mike Hickey from Benchmark Co. maintained a Buy rating on National Cinemedia, with a price target of $7.00.
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Mike Hickey has given his Buy rating due to a combination of factors including National CineMedia’s strategic acquisition of Spotlight Cinema Networks. This acquisition enhances NCM’s market presence by adding luxury and art house exhibitors, which bolsters their reach in key markets like New York and Los Angeles. The deal is expected to be accretive, with significant synergies anticipated by 2026, and it brings valuable screens from premium exhibitors, appealing to high-end advertisers.
Furthermore, the acquisition is seen as a cost-effective move, with Spotlight contributing positively to NCM’s sales efforts due to its strong connections with luxury brands. Despite the leadership changes within the company, Hickey does not foresee any negative impact on client relationships or sales performance. The overall outlook for NCM remains positive, with expectations that upcoming film releases will support stable performance in the near term.