Goldman Sachs Upgrades Cinemark Holdings (CNK) to Neutral

Goldman Sachs analyst Stephen Laszczyk upgraded Cinemark Holdings (NYSE: CNK) from Sell to Neutral with a price target of $30.00 (from $23.00).

The analyst comments "We upgrade shares of CNK to Neutral from Sell and increase our price target to $30 from $23, following a moderation in structural downside risks to the theatrical industry, improved visibility into the durability of near-term industry box oce trends, and solid execution by CNK across market share and pricing. Our 12-month price target of $30, remains based on an equal-weighted average of three valuation methodologies: 33% on 7.0x 2027E TEV/Adjusted EBITDA, 33% on 12.0x 2027E P/FCF, and 33% DCF using a 10.4% WACC and a 2.3% TGR. Our higher multiples and TGR reect improved downside tail-risk to the theatrical industry and improved visibility into the company's Adjusted EBITDA (as discussed within). See valuation section within for details. We see share price performance over the next 12 months primarily driven by i) how top franchise titles perform into 2026 & beyond, ii) whether new cohorts of lm makers can improve the quality of lm-supply, iii) whether CNK can sustain momentum in pricing power & market share, iii) execution against sustained margin expansion towards the 20%+ range, and iv) its ability to balance investment with converting EBITDA into Free Cash Flow."

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 $29.42 yesterday.

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