Wells Fargo Downgrades Cinemark Holdings (CNK) to Underweight, 'Negative on Box Office Outlook'

Wells Fargo analyst Steven Cahall downgraded Cinemark Holdings (NYSE: CNK) from Equal Weight to Underweight with a price target of $13.00 (from $16.00).

The analyst comments "Our PT goes from $16 to $13 as our F24E AEBITDA moves lower by -17%. We are still applying a 7x multiple on our blended CY24/25E AEBITDA of $503mm for a target EV of $3.5bn. After deducting ~$1.5B in net debt, we derive a $2.0B equity value, or $13/sh. This justifies our U/W rating. We could get more constructive if: 1.) the DBO outperforms; 2.) we've overestimated negative op leverage; or 3.) we begin to approach '25, where we expect some recovery in tentpole"

For an analyst ratings summary and ratings history on Cinemark Holdings click here. For more ratings news on Cinemark Holdings click here.

Shares of Cinemark Holdings closed at $14.93 yesterday.

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