Wedbush downgrades Cinemark with shares ‘priced for perfection’

Wedbush downgraded Cinemark (CNK) to Neutral from Outperform with an unchanged price target of $32. The firm says the shares are now “priced for perfection.” While it favors Cinemark, saying the company preserved cash during the box office slowdown giving it more flexibility as the industry rebounds, and continues to shore up its balance sheet, Wedbush believes the shares are now fully valued. It expects Cinemark’s reinstated dividend to be lower than its most recent dividend, but notes this will be supplemented by periodic share repurchases to optimize capital allocation while there are potential acquisition opportunities available.