UPDATE: Piper Jaffray Downgrades Regal Entertainment Group to Neutral, Reiterates $16 PT

In a report published Friday, Piper Jaffray & Co. downgraded its rating on Regal Entertainment Group

from Overweight to Neutral, and reiterated its $16.00 price target. Piper Jaffray noted, “We recommend investors move to the sidelines with a Neutral rating as the shares have reached our price target. While current box office trends have been exceedingly strong (QTD up 20%), we expect 4Q to cool throughout the balance of December to 11% as The Hobbit potentially underperforms high expectations. We believe 2013 box trends will be more challenging against a record 2012 box office and 1Q likely will be down 8-9%. While we continue to like the Regal story, valuation looks relatively full to us in the face of decelerating fundamentals and many company-specific catalysts already announced (announced special dividend, acquisition of Great Escape Theatres); accordingly, we may see a better entry point during 2013 when box office trends show signs of acceleration.” Regal Entertainment Group closed on Thursday at $15.84.