Cinemark (NYSE:CNK) Price Target Raised to $46.00

Key Points

• Wedbush raised its Cinemark price target from $45 to $46 and maintained an “outperform” rating, implying 18.27% upside from the stock’s current price.
• Cinemark beat quarterly estimates, reporting earnings of $1.04 per share versus $0.98 expected and revenue of $1.06 billion versus $1.04 billion expected. Revenue grew 23.5% year over year.
• Analyst sentiment is broadly positive: MarketBeat’s consensus rating is “Moderate Buy,” with an average price target of $39.57.

Cinemark (NYSE:CNK - Get Free Report) had its target price raised by stock analysts at Wedbush from $45.00 to $46.00 in a report issued on Wednesday, Benzinga reports. The firm currently has an "outperform" rating on the stock. Wedbush's target price points to a potential upside of 18.27% from the stock's current price.

Several other research analysts also recently weighed in on CNK. The Goldman Sachs Group upgraded shares of Cinemark from a "sell" rating to a "neutral" rating and increased their price target for the stock from $23.00 to $30.00 in a research report on Wednesday, July 8th. Benchmark boosted their price objective on shares of Cinemark from $37.00 to $40.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Wells Fargo & Company restated a "reduce" rating and issued a $42.00 price objective on shares of Cinemark in a research note on Wednesday. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $40.00 target price on shares of Cinemark in a report on Friday, July 31st. Finally, B. Riley Financial reiterated a "neutral" rating on shares of Cinemark in a research report on Monday, October 19th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $39.57.

Cinemark Trading Up 1.0%

Cinemark stock opened at $38.89 on Wednesday. The business has a 50-day simple moving average of $36.98 and a two-hundred day simple moving average of $31.42. The company has a market cap of $4.51 billion, a P/E ratio of 22.94 and a beta of 1.07. Cinemark has a 52-week low of $21.60 and a 52-week high of $40.53. The company has a quick ratio of 0.81, a current ratio of 0.84 and a debt-to-equity ratio of 3.87.

Cinemark (NYSE:CNK - Get Free Report) last issued its quarterly earnings data on Tuesday, November 3rd. The company reported $1.04 earnings per share for the quarter, topping the consensus estimate of $0.98 by $0.06. The firm had revenue of $1.06 billion for the quarter, compared to analysts' expectations of $1.04 billion. Cinemark had a net margin of 6.44% and a return on equity of 50.94%. The business's quarterly revenue was up 23.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.40 EPS. Analysts predict that Cinemark will post 2.68 EPS for the current year.

Institutional Investors Weigh In On Cinemark

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Public Employees Retirement System of Ohio bought a new position in shares of Cinemark in the second quarter worth about $32,000. TD Waterhouse Canada Inc. bought a new stake in Cinemark during the 3rd quarter valued at approximately $36,000. USA Financial Formulas bought a new stake in Cinemark during the 3rd quarter valued at approximately $43,000. Integrated Wealth Concepts LLC purchased a new position in Cinemark in the 2nd quarter worth approximately $60,000. Finally, KBC Group NV lifted its holdings in Cinemark by 56.9% in the 1st quarter. KBC Group NV now owns 4,334 shares of the company's stock worth $124,000 after purchasing an additional 1,572 shares in the last quarter.

Key Stories Impacting Cinemark

Here are the key news stories impacting Cinemark this week:

• Positive Sentiment: Quarterly results beat expectations. Cinemark reported Q3 adjusted earnings of $1.04 per share, ahead of consensus near $0.98, and revenue of $1.06 billion versus estimates of about $1.04 billion. Revenue grew 23.5% year over year, with worldwide revenue reaching a record level. The earnings beat and growth help explain the favorable share reaction. Read More.
• Positive Sentiment: Analyst valuation views improved. Morgan Stanley raised its price target from $40 to $45, while maintaining an Equal Weight rating. A separate report says analysts lifted fair value estimates as they considered record box-office performance. Read More. Read More.
• Neutral Sentiment: Investment plans could support future returns but require substantial spending. A long-term investor analysis noted capital expenditures could exceed $250 million for projects Cinemark views as high-return. Execution and returns on that investment will matter. Read More.
• Negative Sentiment: Management flagged a risk to the theatrical ecosystem. CEO Sean Gamble criticized the release model for Netflix’s The Further Mis-Adventures of Cliff Booth, saying it was not favorable for theaters. The comments point to ongoing uncertainty about competition from streaming and film release windows. Read More.

About Cinemark

Cinemark Holdings, Inc NYSE: CNK is a leading motion picture exhibition company that operates movie theaters in the United States and Latin America. Through its Cinemark and Century theater brands, the company provides audiences with theatrical entertainment, including first-run films, premium large-format presentations and enhanced viewing experiences.

Cinemark's theaters generate revenue primarily through ticket sales and food and beverage concessions. Its offerings may include reserved seating, luxury reclining seats, Cinemark XD premium auditoriums, online and mobile ticketing, and loyalty programs such as Cinemark Movie Rewards.

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