Bank of America Reiterates Buy Rating, $6.70 PT on Bona Film Group Ltd. Following In-Line 1Q Net Revenue

In a report published Friday, Bank of America analyst Mandy Chan reiterated a Buy rating and $6.70 price target on Bona Film Group Ltd.

. In the report, Chan noted, “Bona's 1Q net revenue came in at US$43.3mn (flat YoY, -19% QoQ). Adj. net income was US$1.2mn (at the lower end of its original guidance of US$1.2-1.5mn), in-line with our estimate but lower than consensus by 14%. The box office of the four films distributed in Q1 – The Grandmasters, Bring Happiness Home, Angry Kid and Princess and the Steven Kung Fu Masters – was mostly in-line with expectations. Cinema business continues to ramp up. It now contributed US$14mn (+76% YoY, +8% QoQ), which accounts for more than 32% of Bona's top-line. We maintain our PO at US$6.70.” Bona Film Group Ltd. closed on Thursday at $4.46.