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Friday - B.Riley analysts have initiated coverage on Marcus Corporation (NYSE:MCS) stock, assigning a Buy rating with a price target of $24.00. Currently trading at $17.25, the stock carries a strong Buy consensus among analysts, according to InvestingPro data. The move comes despite slight downward revisions to the company’s adjusted earnings before interest, taxes, depreciation, and amortization (AEBITDA) for the years 2025 and 2026. These adjustments are attributed to conservative projections for Marcus Corp ’s Hotel and Resorts segment, considering the current economic uncertainties. Despite current challenges, InvestingPro data shows the company is expected to achieve 11% revenue growth this fiscal year.
The analysts expect a generally stable performance from Marcus Corp’s business, with modest growth in Revenue per Available Room (RevPAR) and improving occupancy rates anticipated later in the year. This outlook is supported by the nearing completion of renovations at the Hilton Milwaukee and the recent expansion of a convention center, which are expected to contribute to the company’s relative outperformance.
In addition to the hospitality segment, Marcus Corp’s Theatres segment is poised for growth, bolstered by a strong film release schedule. The company’s strategy to increase movie attendance through aggressive promotions is also seen as a potential growth catalyst in the upcoming quarters.
The analysts’ positive stance is further reinforced by the current stock price, which has declined approximately 25% from its December 2024 highs, compared to the 14% drop in the Russell 2000 index. This comparison suggests a favorable risk/reward profile for Marcus Corp’s shares, with significant upside potential identified by B.Riley. Despite the recent decline, the stock has delivered an impressive 58% return over the past year. For deeper insights into Marcus Corporation’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, check out the full research report available on InvestingPro.
In other recent news, Marcus Corporation reported its first-quarter 2025 earnings, revealing a larger-than-anticipated loss in earnings per share (EPS) at -$0.54, compared to the forecast of -$0.43. However, the company’s revenue exceeded expectations, reaching $148.8 million against a projected $145.56 million. Benchmark analysts have maintained a Buy rating with a $25 price target, highlighting the company’s promising early second-quarter results and strong film lineup. Marcus Corp also announced the approval of its 2025 Omnibus Incentive Plan, which allows for equity and cash incentive awards, including the issuance of up to 2,000,000 shares of common stock. Additionally, the company declared regular quarterly cash dividends, with common stockholders receiving $0.07 per share and Class B common stockholders receiving $0.064 per share, scheduled for payment on June 16, 2025. At the company’s 2025 Annual Meeting, shareholders elected ten directors and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year. The company continues to focus on aligning employee and shareholder interests through its incentive plan, while also reinvesting in high-return assets such as the Hilton Milwaukee.
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