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UPDATE: Wunderlich Securities Initiates Coverage on Cinemark Holdings

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According to a research report published this morning, Wunderlich Securities has initiated Cinemark Holdings (NYSE: CNK) with a Buy rating and $30 PT.

In the report, Wunderlich Securities said, "We divvy our valuation between a U.S. business (57% of asset value) that is linked to the S&P 500, and a higher growth (43%) Latin business that is geared off a Brazilian Bovespa cost of equity. Given significant Latin CapEx outlays, Cinemark is more of a ROIC story than an immediate free cash flow story relative to a peer like Regal Entertainment Group (RGC- $14.37, Buy). We also run cost-adjusted sensitivities for 2016 EBITDA and 2012 fair valuation off per-screen attendance in the U.S. and Latin America, with price potential nearing $37 if Latin America achieves plausible 6%+ per-screen attendance growth versus flat growth in the U.S."

Cinemark Holdings closed yesterday at $23.45.

Latest Ratings for CNK

DateFirmActionFromTo
Nov 2014Topeka CapitalDowngradesBuyHold
Sep 2014Morgan StanleyMaintainsEqual-weight
Sep 2014Stifel NicolausUpgradesHoldBuy

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Posted-In: Wunderlich SecuritiesAnalyst Color Initiation Analyst Ratings

 

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