UPDATE: Benchmark Upgrades National CineMedia (NCMI) to Buy, 'Box Office Bounce Back'
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Benchmark analyst Mike Hickey upgraded National CineMedia (NASDAQ: NCMI) from Hold to Buy with a price target of $6.00.
The analyst comments "We believe the domestic theatrical business is poised to make a resounding post-pandemic growth reset, and with that resurgence of movie-goers we think NCM will directly benefit as newly energized cinema media buyers re-engage with an elusive and compelling demographic. We believe virus mitigation efforts has inflected in the U.S., we anticipate an accelerated trend toward a desire for normality, escapism, and out of home entertainment. We remain encouraged that widespread vaccinations, regulatory unlocks and blockbuster films will drive box office growth, like what we have witnessed in China, Japan and Australia. We think NCM is ready to recover much of their pre-pandemic valuation as their growth profile illuminates early signs of recovery and in-line with an emerging domestic box office as illustrated by the strong success of Godzilla vs. Kong. We believe NCM can rebuild pre-pandemic EBITDA levels, and benefit from digital out of home initiatives. NCM offers a hypothetical 100% pre-pandemic return potential."
Shares of National CineMedia closed at $4.66 yesterday.
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