Wedbush Cuts Price Target on Cinemark Holdings (CNK) Due to Weak Box Office Performance
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Price: $37.38 -0.74%
Rating Summary:
17 Buy, 10 Hold, 0 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
17 Buy, 10 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush is maintaining its Neutral rating on shares of Cinemark Holdings (NYSE: CNK) while reducing its price target from $24 to $22.
The firm has tweaked its estimates due to disappointing domestic box office
results. For Q4 and FY11, Wedbush now forecasts EPS of $0.28 and $1.28, down from its previous estimates of $0.31 and $1.30. To go inline with market trends, the firm also lowered its FY12 EPS and sales estimates to $1.50 and $2.43 billion from $1.65 and $2.57 billion.
An analyst at Wedbush comments, "Despite lowering our box office projections and 3D mix assumptions for 2012, we believe there could be upside to our numbers and suspect that the general perception of declining box office is overdone. In our corresponding Movies and Entertainment industry note, we discuss industry growth over the long term and where we believe the industry is headed in 2012. In short, we believe that while 2011 was disappointing in relation to 2009 – 2010, it was in line with longterm growth rates the industry has enjoyed since the days of E.T. We suspect that growth may continue at a rate faster than what we have modeled for 2012."
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 $18.55 yesterday.
The firm has tweaked its estimates due to disappointing domestic box office
results. For Q4 and FY11, Wedbush now forecasts EPS of $0.28 and $1.28, down from its previous estimates of $0.31 and $1.30. To go inline with market trends, the firm also lowered its FY12 EPS and sales estimates to $1.50 and $2.43 billion from $1.65 and $2.57 billion.
An analyst at Wedbush comments, "Despite lowering our box office projections and 3D mix assumptions for 2012, we believe there could be upside to our numbers and suspect that the general perception of declining box office is overdone. In our corresponding Movies and Entertainment industry note, we discuss industry growth over the long term and where we believe the industry is headed in 2012. In short, we believe that while 2011 was disappointing in relation to 2009 – 2010, it was in line with longterm growth rates the industry has enjoyed since the days of E.T. We suspect that growth may continue at a rate faster than what we have modeled for 2012."
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 $18.55 yesterday.
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