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The latest announcement is out from Cineplex ( (TSE:CGX) ).
Cineplex Inc. has announced the sale of its digital place-based media division, Cineplex Digital Media (CDM), to Creative Realities Inc. for $70 million. This strategic divestment is expected to strengthen Cineplex’s balance sheet, allowing for share buybacks, debt reduction, and other corporate purposes. Cineplex will retain an exclusive advertising sales agency relationship with CDM for digital-out-of-home networks in Canada, ensuring continued influence in this sector. The transaction, which is subject to regulatory approvals, highlights Cineplex’s focus on unlocking shareholder value and optimizing its operations.
The most recent analyst rating on (TSE:CGX) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Cineplex stock, see the TSE:CGX Stock Forecast page.
Spark’s Take on TSE:CGX Stock
According to Spark, TipRanks’ AI Analyst, TSE:CGX is a Neutral.
Cineplex’s overall stock score is primarily influenced by its financial performance challenges, including high leverage and negative equity. The technical analysis indicates bearish momentum, further impacting the score. Despite these issues, the positive sentiment from the earnings call provides some optimism, reflecting recovery in key revenue areas.
To see Spark’s full report on TSE:CGX stock, click here.
More about Cineplex
Cineplex Inc. is a leading Canadian entertainment and media company operating in the Film Entertainment and Content, Amusement and Leisure, and Media sectors. It runs 171 movie theatres and various entertainment venues, including The Rec Room and Playdium. Cineplex is also involved in cinema media, digital place-based media, alternative programming, and motion picture distribution. It is a partner in Scene+, Canada’s largest entertainment and lifestyle loyalty program, and employs over 10,000 people across Canada.
Average Trading Volume: 313,579
Technical Sentiment Signal: Buy
Current Market Cap: C$725.1M
For a thorough assessment of CGX stock, go to TipRanks’ Stock Analysis page.