UPDATE: Piper Jaffray Upgrades Regal Entertainment to Overweight

Piper Jaffray raises its rating on Regal Entertainment RGC and lifts its price target to $16 from $15 on a strong box office results so far into the year. Piper Jaffray says, "Recall we had hit the pause button at year-end and prioritized our exhibitor ratings after dismal 4Q box office (down 5% vs. double digit expectations). The worry at the time was that the weak holiday slate would spill into 1Q and invigorate the secular bear story bringing into question the sustainability of Regal's dividend. But the first six weeks of 2012 box office has resulted in massive reversal (admissions up 18% and attendance up 21% and the potential blockbuster Hunger Games remains poised to anchor the 1Q. All this sets the stage for earnings outperformance, but also helps quiet the secular bear story." RGC closed at $13.05 a share yesterday.