UPDATE: Nomura Maintains Cinemark Holdings at Buy Following Asset Purchase
Nomura reiterated its view on Cinemark Holdings (NYSE: CNK), maintaining its Buy rating with a $29 price target.
Nomura noted, "CNK has agreed to acquire most assets of Rave Real Property Holdco, an affiliate of Rave Cinemas, for ~$240mn in cash and certain liabilities. Deal gives CNK 32 theatres / 483 screens in 12 states (all screens digital, 37% 3D-capable). On trailing 12 mo basis, the 32 theaters had $229mn in rev. / $42mn in adj. EBITDA, implying a reasonable 5.8x EBITDA before synergies (vs CNK's 12E EV/EBITDA of 6.9x)/ and rel. solid EBITDA margin of 18% (vs. CNK's 21%). Per screen price is 28% higher than avg deals over past decade, but this looks to be high-quality theaters and a solid acquisition for CNK. No chg in ests as we await clarity on deal close (end CY seems likely)."
Cinemark Holdings closed at $25.59 on Friday.
Latest Ratings for CNK
|Sep 2014||Morgan Stanley||Maintains||Equal-weight|
|Sep 2014||Stifel Nicolaus||Upgrades||Hold||Buy|
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