Royal Bank Of Canada Issues Positive Forecast for Cineplex (TSE:CGX) Stock Price

Key Points

• Royal Bank of Canada raised Cineplex’s price target from C$14.00 to C$15.00 while maintaining an “outperform” rating, implying 19.52% upside from the stock’s current price.
• Analyst sentiment is broadly positive: Cineplex has a consensus “Buy” rating and C$14.00 average price target, with recent target increases from National Bank Financial and Scotiabank and a “strong-buy” upgrade from TD Securities.
• Cineplex shares recently traded at C$12.55, while the company reported C$0.12 in quarterly EPS and C$383.72 million in revenue; however, it continues to post a negative net margin and carries substantial balance-sheet leverage.

Cineplex (TSE:CGX - Get Free Report) had its price target raised by Royal Bank Of Canada from C$14.00 to C$15.00 in a research report issued to clients and investors on Tuesday, BayStreet reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's price target indicates a potential upside of 19.52% from the stock's current price.

CGX has been the subject of a number of other reports. National Bank Financial upped their target price on Cineplex from C$13.50 to C$14.00 and gave the company an "outperform" rating in a research note on Wednesday, August 12th. TD Securities raised shares of Cineplex to a "strong-buy" rating in a report on Friday, July 24th. Finally, Scotiabank raised their price objective on shares of Cineplex from C$12.00 to C$13.50 and gave the stock a "sector outperform" rating in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus price target of C$14.00.

Cineplex Stock Performance

CGX stock traded up C$0.11 during trading on Tuesday, reaching C$12.55. 259,442 shares of the stock were exchanged, compared to its average volume of 292,559. Cineplex has a twelve month low of C$9.15 and a twelve month high of C$13.28. The company has a market capitalization of C$790.69 million, a P/E ratio of -62.75, a price-to-earnings-growth ratio of 0.30 and a beta of 0.20. The stock has a 50 day simple moving average of C$12.20 and a 200-day simple moving average of C$11.42. The company has a current ratio of 0.44, a quick ratio of 0.22 and a debt-to-equity ratio of -1,865.57.

Cineplex (TSE:CGX - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported C$0.12 EPS for the quarter. Cineplex had a positive return on equity of 14.84% and a negative net margin of 0.96%.The firm had revenue of C$383.72 million during the quarter. As a group, sell-side analysts anticipate that Cineplex will post 1.0754912 earnings per share for the current year.

Cineplex Company Profile

Cineplex is a diversified media company that operates chains of movie theaters. The company has four reporting segments: film entertainment and content; media; amusement and leisure; and location-based entertainment. The film entertainment and content segment includes revenue from theater attendance. The media segment includes cinema media and digital place-based media operations. The amusement and leisure reporting segment manages the operation and distribution of gaming and vending equipment. Formerly housed in the amusement and leisure segment, the location-based entertainment business derives revenue from entertainment restaurant chains like The Rec Room and Playdium.

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