Cineworld (LON: CINE) shares rallied 9.41% higher today as the company reopens more UK cinemas with the Union Square and Silverburn cinemas reopening tomorrow.
A positive rating by analysts at UK investment manager Peel Hunt who released an investor note with a buy rating and a price target of 180p saying that Cineworld presents “an attractive buying opportunity” also fueled the stock’s rally.
The lifting of the restrictions imposed to combat the coronavirus across the UK and America has led to the reopening of many Cineworld theatres driving the stock higher.
Cineworld stock is likely to keep rising as more theatres reopen and moviegoers flock to its cinemas to view many of the movie classics that are currently playing.
However, long-term investors are concerned about the company’s huge debt load, given that it spent $568 million on debt servicing costs in 2019.
As traders, we are looking to profit from short-term price moves in either direction and our holding periods are much shorter as compared to long-term investors.
Cineworld share price
Cineworld shares today rallied 9.41% to a high of 59.78p versus yesterday’s closing price of 54.64p.