Skip to content

Cinemark Rallies After Upgrade – Cineworld, AMC Entertainment Also Rise

Sam Boughedda
Sam Boughedda trader
Updated 13 Jan 2023

On Thursday, shares of movie theatre stocks Cinemark (NYSE: CNK), AMC Entertainment (NYSE: AMC), and Cineworld (LON: CINE) made gains as consumer-related stocks make a solid start to 2023.

new-recommended-broker-banner

YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


London-listed Cineworld rose 8.92% (up 1.1% so far Friday morning), while AMC Entertainment closed yesterday’s session up 2.03%.

Meanwhile, Cinemark climbed 10% after the stock was upgraded to Overweight from Neutral with a $15 price target by JPMorgan analyst David Karnovsky.

Top Broker Recommendation

YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY

Karnovsky told investors in a research note that Cinemark is well-positioned to gain market share due to its “strong operating history, loyalty program, and healthier financial position.”

In addition, he noted that the recent sell-off and the success of the Avatar movie since its underperformance in the opening weekend mean the stock has a “better risk/reward.”

Furthermore, in regards to the industry as a whole, Karnovsky believes the North American box office will continue its recovery in 2023 and 2024, backed by an increased supply of films from traditional studios and incrementally streaming companies.

Karnovsky believes recent comments from studios in support of the theatrical model also provide him with greater confidence in the stability of the industry.

According to TipRanks, out of seven analysts, six have a Buy rating, and one has a Hold rating on Cineworld shares, with the average price target of $15.57 representing a potential 53% upside from current levels.


YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam Boughedda
Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.