UPDATE: Piper Jaffray Upgrades National CineMedia to Overweight

Piper Jaffray raises its rating on National CineMedia

to Overweight from Neutral and increases its price target to $18 from $15 as it sees ad worries subsiding, first quarter attendance bouncing back and Street consensus on the company low. Piper Jaffray says, "We are buyers of NCMI shares as we see scatter-related concerns easing, improving attendance and conservative expectations driving the shares higher. While we see the potential for some modest ad weakness in the upcoming quarter, we like the risk/return at current levels (combined with an attractive dividend). A review of ad-based media stocks suggests that most have rebounded from summer lows (up 15% since early August), but NCMI has yet to rebound. We expect that to change as investors re-evaluate ad forecasts and improving attendance." NCMI closed at $14.07 a share on Tuesday.