The actors strike rattling Hollywood could spell trouble for shares of Cinemark Holdings in the near term, according to JPMorgan.
Analyst David Karnovsky downgraded the movie theater chain to neutral from an overweight rating, viewing the strike as a near-term impediment for shares limiting box office visibility.
"Absent a resolution, we expect the strike will remain an overhang to CNK shares and limit upside."
"Visibility into this, however, is now limited by the SAG-AFTRA strike, which has already shut down production for several films slated for 2H'24."
Given the near-term headwinds, JPMorgan adjusted its price target to $18 from $21 a share, reflecting 17% upside from Tuesday's close.
Persons:
David Karnovsky, Karnovsky, CNBC's Michael Bloom
Organizations:
Cinemark Holdings, JPMorgan, Alliance, Producers, SAG, 2H