UPDATE: Ascendiant Capital Initiates Coverage on Carmike Cinemas with Buy Rating, $20 PT on Expected Continued Outperformance

In a report published Friday, Ascendiant Capital analyst Marla Backer initiated coverage on Carmike Cinemas

with a Buy rating and $20.00 price target. In the report, Backer noted, “Carmike's operating performance has improved following aggressive restructuring, remodeling and deleveraging initiatives. On 2012 Admissions revenue growth, the company over-indexed the industry by about 220 bps. We expect continued outperformance. Carmike's 2012 adjusted EBITDA margin was 18.1%, up from 13.2% in 2010. As Carmike maintains its focus on cost controls, we expect further expansion. The company's screen count has begun to grow,the result of a low cost new build strategy and opportunistic M&A. We believe this could also improve Carmike's negotiating leverage on film rentals.” Carmike Cinemas closed on Thursday at $17.02.