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Wedbush Offers Q2 Update On Theater Stocks: Favors IMAX, AMC, Regal

Wedbush Offers Q2 Update On Theater Stocks: Favors IMAX, AMC, Regal
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With the upcoming 2Q earnings season, Wedbush’s Michael Pachter commented on the likely performances of theater stocks.

  • IMAX Corporation (USA) (NYSE: IMAX) - Outperform maintained, with $40 price target. The company is likely to report in-line 2Q results, analyst Michael Pachter said. He expressed optimism regarding IMAX being able to generate revenue and earnings growth over the coming quarters.
  • AMC Entertainment Holdings Inc (NYSE: AMC) - Outperform maintained, with $33 price target. The analyst expects the company to have continued to lose market share in Q2, partly due to the newly acquired screens underperforming the greater circuit. While concessions are expected to have increased, film rental margins are likely to have been better than was previously anticipated.
  • Related Link: Is AMC Even More Likely To Walk Away From Carmike Now?

  • Carmike Cinemas, Inc. (NASDAQ: CKEC) - Neutral maintained, with $30 price target. The company’s box office performance is likely to have been “underwhelming” in 2Q, Pachter said. He expects AMC to complete its acquisition of Carmike by the end of 2016.
  • Cinemark Holdings, Inc. (NYSE: CNK) – Neutral maintained, with $40 price target. Currency headwinds are likely to have continued to mask the company’s otherwise strong results. The analyst expects Cinemark to have gained share in the domestic market.
  • Regal Entertainment Group (NYSE: RGC) – Outperform maintained, with $25 price target. The company is ramping up its modernization initiatives and improving its footprint, albeit a little slower than its peers. Pachter expects Regal to have performed in-line with the industry box office of down 9.3 percent.
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    Latest Ratings for IMAX

    Feb 2017Credit SuisseDowngradesOutperformNeutral
    Nov 2016Credit SuisseAssumesOutperform
    Sep 2016MacquarieMaintainsOutperform

    View More Analyst Ratings for IMAX
    View the Latest Analyst Ratings

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