-- Cinemark (CNK) is positioned to benefit from a more consistent film release slate over the coming quarters, along with ongoing gains in pricing, premium format adoption and theater investment initiatives, Wedbush Securities said in a Monday note.
The analysts said Cinemark delivered strong Q1 results with revenue, adjusted EBITDA, and earnings per share all exceeding expectations. The performance was driven by robust domestic box office trends, higher attendance and improved ticket pricing.
Wedbush highlighted strong concessions performance, including record domestic food and beverage per-cap spending, supported by pricing actions and operational efficiencies. The note also pointed to steady market share, a strong loyalty program and expanding alternative content offerings.
The company can benefit from investments in premium seating, laser projection and IMAX expansion. It also sees upside from new builds and potential acquisitions. Shareholder returns through dividends and buybacks remain a key part of the story and a stronger film slate should support performance over the rest of the year, according to the note.
Wedbush maintained its outperform rating on the stock with a price target of $37.
Shares of Cinemark were up 1.6% in Monday trading.
Price: $28.07, Change: $+0.45, Percent Change: +1.63%