Analyst Benjamin Swinburne of Morgan Stanley maintained a Buy rating on Cinemark Holdings, reducing the price target to $34.00.
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Benjamin Swinburne has given his Buy rating due to a combination of factors that suggest a positive outlook for Cinemark Holdings. He anticipates a recovery in the theatrical business in North America, with an expected 13-14% growth in the box office by 2026. This growth, although slightly lower than previous estimates, is projected to lead to a significant increase in adjusted EBITDA, making the stock attractive given its current trading multiples.
Furthermore, Swinburne expects Cinemark to enhance shareholder value through share buybacks and increased dividends as the company moves past its convertible notes and associated hedges. Despite a conservative approach to 2026 estimates, he remains optimistic about the company’s potential to double its free cash flow per share from 2025 to 2027, supported by a growing supply of exclusive theatrical releases. These factors collectively underpin his positive recommendation for Cinemark Holdings.
According to TipRanks, Swinburne is a 5-star analyst with an average return of 12.0% and a 56.73% success rate. Swinburne covers the Communication Services sector, focusing on stocks such as Spotify, T Mobile US, and Paramount Skydance.
In another report released on October 18, Roth MKM also maintained a Buy rating on the stock with a $34.00 price target.