Cinemark price target raised to $31 from $28 at Wedbush

Wedbush raised the firm’s price target on Cinemark to $31 from $28 and keeps an Outperform rating on the shares. The firm notes Cinemark’s post-pandemic recovery was postponed in Q4 2023 by last year’s SAGAFTRA strike, which impacted results through June 2024. The top titles in July and August exceeded expectations, while September looks better than Wedbush had previously modeled. Wedbush continues to favor Cinemark here as it preserved cash during this box office slowdown giving it more flexibility as the industry rebounds, continues to shore up its balance sheet, maintaining its leverage ratio within 2-3-times, stays ahead of competitors by investing in its circuit while evaluating M&A opportunities, and is likely to reinstate its dividend in Q4 or Q1 given a normalized release slate.