Wunderlich: Jurassic World Opening 'Knocks It Out of the Park'

In a report published Monday, Wunderelich analyst Matthew Harrigan maintained a Buy rating on

, with a price target of $31, citing the successful opening of Jurassic World. Jurassic World generated a record global opening at $511.8m. In the US, it garnered $204.6mm, second only to the performance by Avengers. "We remain adamant that the exhibitors remain in the catbird's seat in maximizing global film economics for the studios, with huge weekly and quarterly volatility masking relatively predictable annual results that depend more on the film quality than on the global economy," analyst Matthew Harrigan said. Despite Avengers: Age of Ultron showcasing a lower-than-expected performance, the 48 percent growth this weekend takes the box office higher by 4 perecnt to $4.9bn year-to-date. In the report Wunderlich noted, "Inclusive of landlord funding benefits, RGC is funding about 65% of the cost. The company now has 400+ reclining seats, with 30% attendance growth on the low end and 100%+ growth at the favorable outlying points. The sweet spot for ROI per CFO David Ownby has been 50-60% with a collar ranging from 35% to 125%." The EPS estimates for 2015 and 2016 have been reduced from $1.29 to $1.18 and from $1.29 to $1.23, respectively.