Benchmark Downgrades National CineMedia (NCMI) to Hold
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Benchmark analyst Mike Hickey downgraded National CineMedia (NASDAQ: NCMI) from Buy to Hold.
The analyst comments "We are downgrading our rating to Hold from Buy as we suspect that ongoing material pressure from the COVID-19 outbreak could have a sustained negative performance impact. The market environment remains implausibly challenging near-term, compliments of COVID-19 that has forced theaters to close in the US and/or negatively influenced movie patron frequency behavior. National theater operators Regal, AMC, Marcus and Landmark have announced theater closures, a move we anticipate other theater exhibitors will follow. We are cautious over increased film development/release delays that we have witnessed from Hollywood studios and OTT providers due to the growing necessity for social distancing. NBCUniversal broke the theatrical window and will make Trolls World Tour available in-home day and date with theatrical, a potentially catastrophic development, particularly if other studios follow their lead over time."
Shares of National CineMedia closed at $2.71 yesterday.
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