Merriman Curhan Ford Downgrades Carmike Cinemas (CKEC) to Neutral; Cautious on Near-Term Ability
Merriman Curhan Ford downgrades Carmike Cinemas, Inc. (CKEC) from Buy to Neutral. Valuation range from $8.50-$11.
Merriman analyst says, "In our opinion, Carmike Cinemas has established itself as a leader in the digital/3D segment with the installation of almost 500 3D screens in recent years. We believe this will provide a strong competitive advantage with studios and consumers given the already high number of 3D movies scheduled for 2010 and beyond. However, given the 850% rise in the shares since March, the potential for elevated expense levels to linger longer than expected and difficult economy that may hamper price increase pass-through, we believe it may be prudent to wait for better visibility on margin improvement and/or a more attractive entry point...We are lowering our estimates to account for the elevated theater-level operating expense levels with some offset from the expected price increases. Our FY09 and FY10 revenue/EPS estimates go to $503.4M/$0.07 and $521.3M/$0.69 from $504.3M/$0.70 and $520.3M/$0.86, respectively."
To see more analyst ratings on CKEC Click Here.
Carmike Cinemas, Inc. operates as a motion picture exhibitor in the United States. It shows films on a first-run basis, as well as operates discount theatres.
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