Barrington reaffirms Outperform on Cinemark, ups price target to $22

Barrington analyst James Goss raised the firm’s price target on Cinemark to $22 from $20 and keeps an Outperform rating on the shares following Q2 results. The firm notes that concessions per cap continue to build on record highs, while Barrington had been expecting more modest growth. Ticket prices were also above its estimates. The firm is projecting a continuation of the rebound in box office this year, blending toward a normalization over the next few years. To the extent that the strikes are prolonged and create gaps in the film slate comparable to 2021 and 2022, Cinemark has a solid balance sheet and substantial liquidity to manage through a period that could include a decline in box office, Barrington argues. Further, much of the upcoming slate has completed production, so the impact on many tentpoles would be limited to timing of strike resolution to the extent that participation in promotion is essential to a film’s success.