UPDATE: Barrington Research Upgrades National CineMedia to Outperform, Sets $17 PT

In a report published Monday, Barrington Research upgraded its rating on National CineMedia NCMI from Market Perform to Outperform and set a $17.00 price target. Barrington Research noted, “We are raising our rating on NCMI to OUTPERFORM and establishing a target price of $17. We initiated formal coverage of NCMI on April 18, 2012 at a price of $14.10 with a MARKET PERFORM rating. Management is clearly making concerted efforts to build its advertiser base and better customize its ad rate schedule to match demand cycles. While near-term results are expected to show some elements of weakness, we expect that over time management's challenges will shift to managing ad demand in a way that will create an environment in which CPMs on national ad spots can move higher. We view this as a story that continues to evolve, and should provide substantial opportunity given the core value proposition of targeting a demographically attractive captive audience at a time in which the advertising driven content is unavoidable and typically embraced as preferable to a blank screen. The yield is now an even more attractive 6.7%, following the recent pullback in the stock.” National CineMedia closed on Friday at $13.14.