The 'Fate' Of 2 Theater Stocks Ahead Of A 'Furious' Easter Opening
Millions of movie fans are likely excited to catch "The Fate of the Furious" film over the long Easter weekend, but how should investors position their portfolios?
Matthew Harrigan of Wunderlich reiterated a Buy rating (with an unchanged $30 price target) on the movie theater chain Regal Entertainment Group (NYSE: RGC) following the success of the "Beauty and the Beast" film and high expectations for the latest "Furious" saga.
According to Harrigan, the domestic total opening sales for the "Furious" film could be as high as $120 million as it appeals directly to urban audiences. The film will also benefit from the fact that it is the widest ever U.S. pre-summer release at 4,303 venues.
As such, the analyst suggested that Regal could kick off the second quarter on a "very strong" note given high expectations for the 'Furious' film.
Not So Fast On Cinemark
In a separate research report on Thursday, Harrigan maintained a Hold rating on Cinemark Holdings, Inc. (NYSE: CNK)'s stock with a $47 price target.
According to Harrigan, the movie operator with a huge presence in Latin America has seen its business in Brazil remain "vibrant" despite the country's difficult macro environment. While the "Furious" film commands a "huge" appeal in the market but at the same time, the most important market is under-screened even relative to Mexico, let alone the United States.
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Image Credit: By Tokumeigakarinoaoshima (Own work) [CC BY-SA 4.0 (http://creativecommons.org/licenses/by-sa/4.0)], via Wikimedia Commons
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