Upgraded Auditoriums Show Benefit To Regal Entertainment Shares

In a report published Friday, Wunderlich Securities analyst Matthew Harrigan reiterated a Buy rating and $31.00 price target on

. In the report, Wunderlich Securities noted, "We remain very bullish on Buy-rated Regal (RGC) after last night's earnings, even with the stock having been up 130% over the last three years, inclusive of assumed dividend reinvestment as cited by CEO Amy Miles." The report continued, "Inclusive of benefits from a 14th week that reached into the high attendance Christmas to New Year's period, sales were up 8.0% to $799.1mm (our estimate was $794.1mm), with adjusted EBITDA up 30% to $163.5mm (our estimate was $161.0mm), equating to 30 cents in adjusted EPS (in line with our estimate). During the CC, Regal management adumbrated a very cost-effective/high-ROI program for introducing luxury seating to an eventual 25%+ of its screens, with 40% yoy sales benefits for the first wave of upgraded auditoriums in the first six weeks of 2015." Regal Entertainment Group closed on Thursday at $21.88.