Merriman Curhan Ford Upgrades Carmike Cinemas (CKEC) to Buy; Recent Dip Presents Attractive Entry Point

November 17, 2009 7:27 AM EST

Merriman Curhan Ford upgrades Carmike Cinemas, Inc. (Nasdaq: CKEC) from Neutral to Buy.

Merriman analyst says, "In our opinion, Carmike Cinemas has established itself as a leader in the digital/3D segment with the installation of 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. Even though we would prefer to see some increased visibility in the ability of management to offset the recent elevated operating costs, we believe the risk/reward of the current stock price is attractive and are upgrading CKEC shares back to Buy. Applying a 6.5- 7.0x EBITDA multiple to our FY10 estimate of $72.6M yields a potential valuation range of $8.50-11.00."

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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