Deutsche trims Cinemark target, sees rally if Paramount buys Warner

Deutsche Bank lowered the firm’s price target on Cinemark (CNK) to $32 from $34 and keeps a Buy rating on the shares. The firm cites the emergence of Netflix (NFLX) competition following its purchase of Warner Bros. Discovery (WBD) and lower box office expectations for the recent pullback in the shares. If Paramount (PSKY) ends up being the acquiror of Warner Bros., Cinemark shares should see an “immediate recovery” back to the $28 range, the analyst tells investors in a research note. If Netflix remains the buyer, the stock could see downside to about $22.50, based on Deutsche’s analysis. The firm, however, sees upside to $32 over the next 12 months for Cinemark shares, assuming no change to Warner’s theatrical distribution. It believes Paramount seems the more likely buyer of Warner given its all cash offer for the entire company :with a high probability of closing.”