Piper Jaffray Comments on Media & Entertainment Industry

Piper Jaffray is out with its update on media and entertainment, reiterating Overweight on Cinemark (NYSE: CNK), Carmike (NASDAQ: CKEC), and Regal Entertainment (NYSE: RGC).

In a note to clients, Piper Jaffray writes, "The summer box office kicked off in earnest this weekend, setting an all-time record of $270M (previously $246M in 2007). Year-over-year, the weekend box was up a massive 50%, supporting our 14% 2Q forecast. A well balanced slate and massive outperformance by Hangover Part II ($137M opening) drove the results. While Hangover outperformed, Kung Fu Panda 2 opened softer than expected domestically. Early indications are that international should help salvage Panda. We think the strong box office perfomance helps support our bull case on the exhibitors and highlights that consumers haven't lost the movie-going habit when the right films are in theatres. We reiterate our Overweight ratings on CNK, RGC and CKEC."

At the time of posting:

Shares of CNK were trading at $21.99, up 1.10% from Friday's close;

Shares of CKEC were trading at $7.40, up 5.26% from Friday's close;

Shares of RGC were trading at $14.00, up 0.65% from Friday's close.