Despite the overhang of the Hollywood labor strikes, "a significant bull case remains" for Cinemark , according to Morgan Stanley.
Analyst Benjamin Swinburne raised his price target on shares to $24 to $22, suggesting 36.9% upside from Friday's close.
This is based on further box office growth in '24, but '24 attendance at just ~70% of '19 levels which we see as potentially conservative.
"Strikes-aside, studios continue to build back production and we expect increased film supply from both traditional and streaming studios over the next few years.
The analyst added that Cinemark is "uniquely positioned" to benefit from the North American box office recovery owing to a combination of factors, including its conservative balance sheet pre-Covid.
Persons:
Morgan Stanley, Oppenheimer, Benjamin Swinburne, Swinburne, Universal, —, Michael Bloom
Organizations:
Hollywood, Media, Entertainment, Warner Bros, American, US, Universal Studios, CNBC