UPDATE: Morgan Stanley Reiterates On Regal Entertainment Group Following Disappointing 4Q13 EBITDA

In a report published Friday, Morgan Stanley analyst Benjamin Swinburne reiterated an Underweight rating on

, but removed the $20.00 price target. In the report, Morgan Stanley noted, “4Q13 adj. EBITDA of $126M was ~16% behind our below-consensus forecast despite admissions revenue in line with our expectations. Three main factors drove the light results: 1) admissions revenues were more heavily driven by average ticket prices (up 4.8% YoY vs. 2.5% MSe on strong Gravity-driven 3D results) and less on volume (attendance per screen down ~10% YoY vs. MSe down ~7.5%), leading to lower high-margin concessions revenue; 2) ‘other revenues' were ~$10M lower than expected due to lower gift card and advance ticket sales; 3) ‘other costs' were ~$9M higher than expected on new theater launch costs and higher fees to IMAX and RealD on the favorable 3D mix.” Regal Entertainment Group closed on Friday at $19.52.