Morgan Stanley Cuts Cinemark (NYSE:CNK) Price Target to $40.00

Key Points

• Morgan Stanley cut Cinemark’s price target from $42 to $40 while maintaining an “equal weight” rating, implying approximately 11.3% upside from the previous close.
• Cinemark’s shares rose 0.4% to $35.95, while the stock carries a consensus “Moderate Buy” rating and an average analyst target of $37.93.
• The company exceeded quarterly expectations, reporting $1.19 in earnings per share versus a $1.03 estimate and $1.09 billion in revenue, up 15.5% year over year; several major institutional investors also initiated positions.

Cinemark (NYSE:CNK - Get Free Report) had its price target reduced by stock analysts at Morgan Stanley from $42.00 to $40.00 in a report released on Thursday, Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price would indicate a potential upside of 11.28% from the stock's previous close.

Several other equities research analysts have also issued reports on CNK. Barrington Research set a $42.00 target price on Cinemark in a research report on Thursday, July 30th. Wells Fargo & Company raised their price objective on shares of Cinemark from $31.00 to $34.00 and gave the stock an "equal weight" rating in a report on Friday, July 31st. Weiss Ratings raised shares of Cinemark from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, August 21st. The Goldman Sachs Group raised Cinemark from a "sell" rating to a "neutral" rating and increased their price objective for the company from $23.00 to $30.00 in a report on Wednesday, July 8th. Finally, Benchmark upped their price target on Cinemark from $37.00 to $40.00 and gave the company a "buy" rating in a research report on Friday, July 31st. Nine investment analysts have rated the stock with a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Cinemark presently has a consensus rating of "Moderate Buy" and a consensus target price of $37.93.

Cinemark Stock Up 0.4%

Shares of NYSE CNK traded up $0.15 during midday trading on Thursday, hitting $35.95. 648,837 shares of the stock traded hands, compared to its average volume of 2,377,743. The company has a debt-to-equity ratio of 3.87, a quick ratio of 0.81 and a current ratio of 0.84. Cinemark has a one year low of $21.60 and a one year high of $38.98. The business has a 50 day moving average price of $35.51 and a two-hundred day moving average price of $31.47. The company has a market cap of $4.17 billion, a PE ratio of 21.27 and a beta of 0.98.

Cinemark (NYSE:CNK - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The company reported $1.19 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.03 by $0.16. The business had revenue of $1.09 billion during the quarter, compared to the consensus estimate of $1.03 billion. Cinemark had a return on equity of 50.94% and a net margin of 6.44%.The company's quarterly revenue was up 15.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.63 EPS. On average, equities analysts predict that Cinemark will post 2.41 EPS for the current year.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in CNK. BlackRock Inc. bought a new stake in shares of Cinemark in the 2nd quarter valued at approximately $530,855,000. Park West Asset Management LLC purchased a new position in Cinemark during the 2nd quarter valued at about $40,707,000. Bank of New York Mellon Corp purchased a new stake in shares of Cinemark in the 2nd quarter worth approximately $29,387,000. Bank of America Corp DE bought a new position in shares of Cinemark during the second quarter valued at approximately $23,498,000. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in Cinemark during the 2nd quarter valued at $22,657,000.

Cinemark Company Profile

Cinemark Holdings, Inc is a motion picture exhibition company that operates movie theaters in the United States and Latin America. Through its Cinemark and Century-branded locations, the company offers theatrical screenings of newly released films across a range of formats and venue types.

In addition to movie tickets, Cinemark generates revenue through food and beverage concessions, advertising, and premium entertainment experiences. Its offerings include luxury seating, large-format screens, and enhanced audio and visual presentations, along with online and mobile ticketing and the Movie Club customer loyalty program.

Founded in 1987 by Lee Roy Mitchell, Cinemark is headquartered in Plano, Texas.

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