Royal Bank Of Canada Forecasts Strong Price Appreciation for Cineplex (TSE:CGX) Stock

Key Points

• Royal Bank of Canada raised Cineplex’s price target to C$14.00 from C$13.00 and maintained an “outperform” rating, implying 13.09% potential upside.
• Analyst sentiment is broadly positive: Cineplex has a consensus “Buy” rating and an average price target of C$13.83, with National Bank also lifting its target to C$14.00.
• Cineplex shares rose to C$12.38, while the company reported quarterly EPS of C$0.12 and revenue of C$383.72 million; however, it posted a negative net margin of 1.72%.

Cineplex (TSE:CGX - Get Free Report) had its price objective lifted by research analysts at Royal Bank Of Canada from C$13.00 to C$14.00 in a research note issued on Wednesday,BayStreet.CA reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price target would indicate a potential upside of 13.09% from the company's current price.

Several other research firms have also recently commented on CGX. National Bank Financial raised their target price on shares of Cineplex from C$13.50 to C$14.00 and gave the stock an "outperform" rating in a research note on Wednesday. Canaccord Genuity Group boosted their price target on shares of Cineplex from C$10.50 to C$11.50 and gave the stock a "hold" rating in a research note on Tuesday, May 12th. Finally, TD Securities upgraded shares of Cineplex to a "strong-buy" rating in a research report on Friday, July 24th. One investment 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 stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus price target of C$13.83.

Cineplex Stock Performance

Shares of TSE CGX traded up C$0.42 during mid-day trading on Wednesday, hitting C$12.38. 458,878 shares of the company were exchanged, compared to its average volume of 279,713. The stock has a 50 day simple moving average of C$11.87 and a 200-day simple moving average of C$10.99. Cineplex has a 1-year low of C$9.15 and a 1-year high of C$13.28. The company has a quick ratio of 0.22, a current ratio of 0.37 and a debt-to-equity ratio of -1,703.50. The firm has a market cap of C$779.98 million, a price-to-earnings ratio of -34.39, a price-to-earnings-growth ratio of 0.30 and a beta of 0.36.

Cineplex (TSE:CGX - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported C$0.12 earnings per share (EPS) for the quarter. The company had revenue of C$383.72 million for the quarter. Cineplex had a negative net margin of 1.72% and a positive return on equity of 27.72%. On average, sell-side analysts forecast that Cineplex will post 1.0754912 EPS for the current fiscal year.

About Cineplex

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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