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Maxim Group Reiterates a 'Buy' on Carmike Cinemas (CKEC); Expect Solid '12 Box Office Results

February 7, 2012 9:32 AM EST
CKEC Hot Sheet
Rating Summary:
    6 Buy, 1 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 11 | New: 38
Maxim Group reiterates a 'Buy' on Carmike Cinemas (NASDAQ: CKEC) price target of $13.00.

Analyst, John Tinker, said, "CKEC is beginning to ramp up with new theatre builds, which we believe should help even out the box office fluctuations magnified by a small share base. In the meantime, as we wait for a sustained box office recovery, we estimate that free cash flow should grow to about $1.50 in 2012 from $0.66 in 2011. Please note that $1.50 FCF/share is after $23M ($1.80/share) of capital expenditure."

"We are estimating 4Q11 revenues of $112.6M, down 3% y/y and slightly lower than the consensus estimate of $115.1M. We have lowered our 4Q11 revenue estimate from the previous estimate of $129.5M due to lower-than-expected box office results of negative ~5%. The company is expected to report earnings results around second week of March 2012."

For an analyst ratings summary and ratings history on Carmike Cinemas click here. For more ratings news on Carmike Cinemas click here.

Shares of Carmike Cinemas closed at $7.18 yesterday, with a 52 week range of $5.14-$7.95.


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