February turned out to be a big win for Canadian theater chain Cineplex (TSE:CGX), as it reported a record-breaking February with the February 2025 box office figures. This development left shareholders oddly displeased, as shares slid nearly 2.5% in Tuesday morning’s trading.
A combination of factors delivered the win for Cineplex, who reported C$34.9 million in box office take. That was better than double the amount seen in February 2024, actually up 124%. Some solid wins from Hollywood contributed, particularly the release of Captain America: Brave New World, but the Chinese also threw in an unexpected winner with the release of animated film Ne Zha 2.
In fact, Ne Zha 2 managed to account for 25% of the domestic box office share for that month, and even then, it was still only the third highest-grossing film for the month. The release of Captain America: Brave New World may have not had the best reviews, but customers still showed up in droves to catch the latest Marvel outing.
The Pipes Flow Free Once More
One thing was made quite clear here, however: the pipelines are back up and running, and content is once more making its way to theaters. Though there was some concern about the entire movie theater concept, thanks in large part to the growth of streaming and the near-complete loss of the video store, the numbers make it pretty clear that people still want the “theater experience.”
Cineplex’s CEO, Ellis Jacob, recently noted that the return of attractive movies is, in turn, giving the theater a bright future once more. Its fourth quarter profit turned out terrific, reports noted, and that was thanks in large part to a steady flow of new releases. And with studios remaining fairly adamant about keeping theatrical releases in play, that suggests the practice will continue for the foreseeable future.
Is Cineplex a Good Stock to Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on TSE:CGX stock based on two Buys and one Holds assigned in the past three months, as indicated by the graphic below. After a 26.64% rally in its share price over the past year, the average TSE:CGX price target of C$13.33 per share implies 36.72% upside potential.
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