Roth MKM upgraded Cinemark to Buy from Neutral with a price target of $26, up from $19. The company should “prosper” over the next few years, driven by meaningful box office improvement, its debt reduction plans, and a likely reintroduction of capital returns, the analyst tells investors in a research note. The firm says that with the shares trading at less than six-times its estimated 2025 EBITDA with a 10% free cash flow yield, Cinemark’s valuation is very attractive. Roth is increasingly optimistic about upcoming box office releases, especially the big “mega-franchises” slated in 2025 and 2026.
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