Cinemark upgraded to Neutral from Underperform at Credit Suisse

Credit Suisse upgraded Cinemark (CNK) to Neutral from Underperform with a price target of $12, up from $9. With Q4’s "soft" U.S. box office in the rear-view mirror, Street expectations for Cinemark are now reasonable, at least for the first half of 2023, the analyst tells investors in a research note. In addition, the return of Bob Iger as CEO of Disney (DIS) is supportive of the film industry and will potentially lengthen the box office window, says the firm. Credit Suisse still sees still "tepid" U.S. box office growth beyond 2023 with media companies focused on free cash flow, limiting their willingness to ramp film production, but says Cinemark’s valuation fairly reflects the limited growth outlook.