Regal Entertainment Announces $1.40 Dividend

JP Morgan has published a research report on Regal Entertainment (NYSE: RGC) after the company announced it's special dividend of $1.40.In the report, JP Morgan writes "Expect the stock to react favorably to this news. While this hike was expected to come at some point, we believe that investors were growing impatient in recent months, putting pressure on shares. We expect this news to be received favorably and continue to find valuation attractive at 6.7x our 2011E adj. EBITDA and 8.5x FCF, well below historical averages, in addition to the very healthy dividend yield. Aside from this announcement, we acknowledge a lack of near-term catalysts given very difficult box-office comps this quarter and next (e.g., Avatar), though remain positive on the long-term story with a very promising film slate in 2011, including over 30 premium-priced 3D films with a much higher 3D screen count to relieve constrained capacity."JP Morgan maintains its Overweight rating on Regal Entertainment, which closed yesterday at $13.76.