Cinemark Holdings Gets Back To Business In Los Angeles
Cinemark is reopening movie theatres in locations across Los Angeles with the necessary health and safety protocols.
Cinemark (CNK) said that more than 10 theatres reopened on March 13, and it will continue the reopening of theatres through March 15. This means that nearly 90% of Cinemark’s U.S. circuit will be open by March 15.
Furthermore, the company said that California theatres will reopen after the release of local guidance.
Cinemark’s CEO Mark Zoradi said, “Los Angeles is one of the most meaningful moviegoing markets in the world.” He added, “With an extensive list of blockbusters set to release in the coming months and nearly 90 percent of our U.S. circuit open, there is no better time to get back to the theatre.” (See Cinemark Holdings stock analysis on TipRanks)
On March 1, Wedbush analyst Michael Pachter maintained a Buy rating and a price target of $28 (16.6% upside potential). In a note to investors, the analyst said, “Cinemark has sufficient liquidity and relatively low interest expense to cover during closures and low utilization throughout 2021. The bottom line for Cinemark, in our view, is that it has not materially worsened its debt position, and we expect it to come out of the pandemic relatively unscathed.”
Overall, the Street has a Moderate Buy consensus rating on the stock based on 4 Buys and 5 Holds. The average analyst price target of $22.44 implies downside potential of 6.5% to current levels. Shares have gained over 23% over the past year.
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