UPDATE: Stifel Nicolaus Upgrades Regal Entertainment Group to Buy; Structural Improvements

Stifel Nicolaus raises its rating on Regal Entertainment Group RGC from Hold to Buy and establishes a $17 price target on shares following strong Q1 results. Stifel Nicolaus comments, "For us the quarter had two major operational highlights: 1) Box office metrics exceeded the industry average with pricing strong at 2D but largely flat at IMAX/3D. This sets the stage for the company to both capitalize on a strong IMAX/3D slate this summer , with the IMAX slate particularly benefiting Regal, while capturing the consumer surplus at the 2D customer. Attendance was not impacted by the 2D price increases. 2) Across all the major cost drivers, the company showed strong operational improvements." RGC closed at $13.70 on Tuesday.