a far more dire first-quarter report, offering preliminary quarterly numbers expressing doubt about its ability to stave off bankruptcy. The highly leveraged company will address investors on Tuesday during a conference call to discuss its quarterly numbers and the state of its business.The most bullish analyst take came from Eric Handler of MKM Partners, who has a “buy” rating on Cinemark shares and raised his 12-month price target to $21 from $19.
Eric Wold of B. Riley also raised his price target on Cinemark shares to $16 from $13, but maintained his neutral rating on the stock and lowered financial targets slightly. “We remain concerned with initial movie-going trends as the theaters begin to reopen as well as the ultimate film slate,” he wrote, “and we prefer to remain on the sidelines until visibility into both issues improves.
“In an industry with some aggressive M&A history, Cinemark historically has been the most disciplined and conservatively run theater operator,” Fishman wrote. “This allowed the company to react to this pandemic in a position of relative strength, as Cinemark’s peers appear to be less secured for these challenging times.”
Fishman underscored uncertainty about how “secular challenges will impact U.S. movie attendance and we will continue to assess the lasting impact of movie theater closures on theatrical windowing strategies and consumer behavior.”