Canaccord Genuity analyst Aravinda Galappatthige maintained a Buy rating on Cineplex (CPXGF – Research Report) today and set a price target of C$11.00.
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Aravinda Galappatthige’s rating is based on several factors that indicate a positive outlook for Cineplex. The company has shown a strong start in the second quarter, with box office revenues already offsetting the previous quarter’s decline. This improvement is expected to continue, particularly in the fourth quarter, as a promising lineup of films is anticipated to boost attendance.
Additionally, the Media segment has demonstrated significant growth, driven by increased demand from advertisers across various sectors and new client acquisitions in digital place-based media. Despite challenges in the Rec Room segment, the overall financial prospects for Cineplex are favorable, with expectations of improved free cash flow and a potential dividend announcement in early 2026. These factors contribute to the maintained Buy rating with a target price of $11.00 per share.
In another report released on April 28, RBC Capital also maintained a Buy rating on the stock with a C$13.00 price target.