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Cinemark (NYSE:CNK) was upgraded by B. Riley to “Buy” from “Neutral,” with ratings firm expecting an upside for the shares of the movie theater chain versus its industry peers.
B. Riley acknowledged that while most of the group has lagged during 2024, it “underestimated the potential for CNK shares to push through any concerns” and hiked the price target on Cinemark to $27 from $16, with an unchanged target multiple shifted to its 2025 estimates.
“The continued overall post-pandemic market share gains and a slate that may have favored the circuit’s regional demographic should help the company counter the overarching box office headwinds,” B. Riley analyst Eric Wold said in a July 8 note. Wold remains bullish about 2025 box office recovery, with a strong slate and delayed titles from 2024.
In late June, MKM Roth upgraded Cinemark (CNK) to “Buy” from “Neutral” on the prospect that the company would prosper over the next 2.5 years, driven by meaningful box office improvement, debt reduction, and a likely reintroduction of capital returns.
CNK shares are +1.5% at $22.05 premarket; the stock is up over 54% YTD.