National CineMedia price target raised to $5.50 from $4.50 at Wedbush

Wedbush raised the firm’s price target on National CineMedia to $5.50 from $4.50 and keeps a Neutral rating on the shares. While the box office recovered well through the first three quarters of 2023, National CineMedia faced a very difficult advertising environment that forced the company into restructuring, the firm notes. The company exited restructuring in Q3, when Barbie and Oppenheimer piqued advertisers’ interest, with Taylor Swift adding excitement in Q4. This positioned National CineMedia well in the latest upfront round, while year-end scatter was much better than Wedbush expected, driven largely by Taylor Swift. Given the recovering scatter trends, National CineMedia’s new outcome guarantees, and its new programmatic self-service booking tool, the firm thinks its prospects are looking brighter in 2024, especially in 2025 and beyond.