UPDATE: B. Riley & Co. Upgrades The Marcus Corporation On Positive Outlook

In a report published Wednesday, B. Riley & Co. analyst Eric Wold upgraded the rating on The Marcus Corporation (NYSE: MCS) from Neutral to Buy, and reiterated the $21.00 price target.

In the report, B. Riley & Co. noted, “Although we lowered our Q1 estimates last week ahead of Marcus' earnings report on 9/18, we believe the combination of a stronger CY15 film slate and improved customer loyalty is setting up the circuit for stronger box office and overall division results during that period. In addition, we increasingly believe investors are giving Marcus no valuation credit for its real estate portfolio and expect management to take moves to monetize those assets in the next 12-18 months. With MCS' 990 bps underperformance relative to the S&P 500 since our 4/3/14 downgrade and an optimistic outlook on things to come, we are upgrading Marcus from Neutral to Buy with a $21.00 price target and 2.3% dividend yield providing a total return of 28.7%.”

The Marcus Corporation closed on Tuesday at $16.61.