Morgan Stanley analyst Benjamin Swinburne upgraded Cinemark Holdings to Overweight from Equal Weight with a $22 price target. The stock in premarket trading is up 5% to $17.40. The analyst believes the return of consumers to movie theatres is not reflected in the shares. Movie-going has proven to be counter-cyclical as a form of inexpensive entertainment, which insulates Cinemark from a slowing economy, Swinburne tells investors in a research note. The analyst estimates that the U.S. box office will recover to about 85% of its 2019 levels in 2023 and he thinks Cinemark should be able to maintain its 14% market share.
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