Cinemark's Strong Position In Global Exhibition Industry Fuels Analyst Upgrade

B.Riley Securities analyst Eric Wold upgraded Cinemark Holdings Inc CNK to Buy from Neutral at an increased price target of $23 from $20.

The re-rating move comes only about four weeks after B.Riley downgraded CNK from Buy to Neutral.

The analyst is confident about improved Q2 2023 results and continued over-indexing relative to its peer group.

Wold believes in the company's strong position in the improving global exhibition industry.

Wold is confident in recovery in the domestic box office industry and raised box office projection to $9.1 billion from $8.9 billion as YTD box office revenues exceed the initial forecast by ~4%.

Meanwhile, Wold expects strong results from the top films released in H1 2023, with strong moviegoing demand on improvement in slate breadth. 

The analyst expects Q2 2023 revenue of over $860 million (vs. consensus of $850 million) and adjusted EBITDA of over $190 million (vs. consensus of $184 million).

Also Read: Resurgence of Theatrical Experiences: Cinemark Holdings' Future Projections and Impact on Net Debt Leverage

Price Action: CNK shares are trading higher by 2.35% at $16.32 on the last check Wednesday.