Benchmark Reiterates Buy Rating on Marcus Corp. (MCS)

Benchmark analyst Mike Hickey reiterated a Buy rating and $25.00 price target on Marcus Corp. (NYSE: MCS).

The analyst commented, "Marcus's theatrical segment likely faced a tough 1Q, with flat to down admissions and pressured margins driven by elevated film rental costs from holiday holdovers and labor inefficiencies tied to the surprise collapse of Snow White. Despite the soft start, we remain very optimistic in 2025 and have kept our full year estimates essentially unchanged. The 2Q slate is exceptionally strong with A Minecraft Movie, with upcoming titles including Sinners, Thunderbolts, Mission Impossible, How to Train Your Dragon, and F1. We continue to view cinema as a highly defensive category and believe macroeconomic pressures including tariffs or a potential recession could benefit Marcus, which has historically outperformed during downturns by offering a compelling out of home trade down option. The stock is trading at a forward 5.5x EV to AEBITDA, nearly half its normal multiple, is driving cash flow, pays a dividend, has a share repurchase plan, a notable catalyst in the upcoming film slate, and a proven defensive profile in economic downturns. We believe most of the 1Q weakness is priced, but if not, we would be opportunistic on weakness including anything in the release that appears less than transitory."

For an analyst ratings summary and ratings history on Marcus Corp. click here. For more ratings news on Marcus Corp. click here.

Shares of Marcus Corp. closed at $15.98 yesterday.

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