Benchmark Maintains Bullish Views for Carmike Cinimas (CKEC), Raises Target Price

Benchmark reiterates their Buy rating on Carmike Cinimas Inc. (NASDAQ: CKEC) and also raises the target price to $37.09 (from $36.56) as they expect the company to continue their aggressive strategy as a theater network aggregator. Carmike reported sales of $184.3M over adjusted EBITDA of $29.8M. Admissions revenue is up by 14% y/y, and concessions up 19%.

Benchmark analyst Mike Hickey explains that, "Average ticket price was essentially flat, while attendance growth was
14% y/y. On a per screen basis, admissions sales generated growth of 5% or an estimated 180 bps over the market while concessions per patron growth were +4%.

Hickey goes on to say, "We anticipate the opportunity for exhibitor acquisitions will open considerably in early F’16. The
Company’s relative scale better enables meaningful EBITDA growth potential through theatre network acquisitions, a particular relevant consideration within a challenged domestic box office environment, as we anticipate F‘16 could provide."

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