Analyst Still Sees Nearly 100% Upside In Helios And Matheson, Says MoviePass Will Help Revive Movie Ticket Sales

Helios and Matheson Analytics Inc HMNY closed up 47 percent Monday on news of an increased stake in MoviePass.

That brings the stock up 330 percent year-to-date — and one expert thinks it’s still has room to run.

“We argue large movie theater chains will benefit from MoviePass that we expect will help revive movie ticket sales, which leads to more concession sales,” Maxim analyst Brian Kinstlinger wrote in a Monday note. “Furthermore, we believe the Hollywood studios may be less hesitant than the theater chains to compensate MoviePass if it can fill more seats.”

MoviePass recently reported that it saw a 30-fold increase in paying monthly subscribers from 20,000 in August to 600,000 in October.

The Stock Story

Helios and Matheson’s initial interest in MoviePass inspired a rally of more than 1,000 percent, but the stock waned from a mid-October all-time high of $38.86 following a short report by Citron Research. The seller covered its position the following day, when investors began closing their positions.

Maxim is the only Wall Street firm covering Helios and Matheson, according to TipRanks. Forecasting rapid subscriber growth and considering lower financing risk, Kinstlinger reiterated his Buy rating on the stock and increased his price target from $20 to $25.

At the session’s close, shares were valued at $14.20.

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