UPDATE: B. Riley Upgrades Marcus Corp. (MCS) to Buy
B. Riley upgraded Marcus Corp. (NYSE: MCS) from Neutral to Buy with a price target of $23. Analyst Eric Wold thinks investors should look past confusion in Q4 and focus their attention on Marcus Corp's strong theater division and underappreciated assets.
Wold explained, "We believe mixed Q4 results reported by Marcus Corp. not only masked continued strong trends in the Theater division (with attendance growth of +9.8%), but were impacted by short-term issues at one Hotel property that is now in the past. We believe Marcus’ theaters remain well positioned to outperform the industry and gain share in the Midwest region (also benefitting from an impressive film slate) and the Hotel/Resort division’s value remains underappreciated as management works to monetize some real estate assets. With that in mind and following the 15% decline in MCS shares since our downgrade to Neutral back on 4/13 (vs. flat performance for the S&P 500), we are now upgrading MCS from Neutral to Buy along with raising our price target slightly from $22.75 to $23.00."
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 $18.61 yesterday.