Cinemark Holdings (NYSE:CNK) is one of the best communication services stocks according to Hedge Funds.
Mike Hickey from Benchmark & Co reiterated his optimism on Cinemark Holdings (NYSE:CNK), rating the stock as Buy on December 10. Hickey has set a $35 price target for the stock, implying over 55% upside for investors.
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Hickey spoke of the ongoing sale process involving Warner Bros. and Discovery, which is benefiting theater exhibition businesses in general. He pointed out the aggressive intentions of bidders involved in the process, who plan to generate a larger volume of films, maintain a stable slate output, and deliver ongoing support for traditional theater windows.
According to Hickey, such indications are creating optimism around the broader industry, and in particular for Cinemark Holdings (NYSE:CNK). Backing that up is the fact that the company management is currently executing a share repurchase program despite a comparatively high Price-to-Book ratio of 7.48x. This signals a strong management view of the business for the foreseeable future, and could spark investor interest.
As of December 7 closing, consensus views remain strong for Cinemark Holdings (NYSE:CNK). With an estimated 1-year median price target of $33.67, the stock offers a highly impressive upside of over 49%. It has received Buy ratings from 5 of the 6 analysts covering it, with just 1 Hold rating.
Cinemark Holdings (NYSE:CNK) operates one of the largest motion picture exhibition chains in the world. They run various brands such as Cinemark, Cinemark XD, Tinseltown, and Rave. They are renowned for offering premium entertainment experiences, with a highly diverse circuit in the U.S., Central, and Latin America.
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Disclosure: None. This article is originally published at Insider Monkey.
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