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Investing.com - Benchmark maintained its Buy rating and $35.00 price target on Cinemark Holdings (NYSE:CNK) despite lowering third-quarter estimates due to weaker-than-expected domestic box office performance. According to InvestingPro data, the stock currently trades at a P/E ratio of 10.7, suggesting potential value relative to its growth prospects. Analyst consensus remains bullish, with price targets ranging from $22 to $37.
The research firm noted that September’s weaker film slate is unlikely to offset tough year-over-year comparisons, contributing to the downward revision of Q3 estimates for the theater chain operator.
Benchmark expressed optimism about the industry’s outlook, pointing to a strengthening release calendar in Q4 2025 that should position the movie theater sector for a sharp rebound.
The firm further projected that 2026 could see sustained growth for Cinemark, supported by what it described as a deeper and more balanced pipeline of film releases.
Benchmark also highlighted Cinemark’s proactive approach to addressing its warrant overhang through early unwind agreements, which require a mix of cash and stock settlement but provide clarity on dilution and remove a key balance sheet risk as the company heads into recovery.
In other recent news, Cinemark Holdings reported its second-quarter 2025 earnings, which did not meet Wall Street expectations. The company posted an earnings per share of $0.63, falling short of the forecasted $0.7052 by 10.66%. Revenue also came in slightly below projections at $940.5 million, compared to a forecast of $942.98 million. Meanwhile, Cinemark announced a quarterly cash dividend of $0.08 per share, payable in September to stockholders of record as of late August. Roth/MKM adjusted its price target for Cinemark to $34, down from $36, due to a softer outlook for the third quarter, though it remains optimistic about a strong fourth quarter. Benchmark reiterated its Buy rating and a $35 price target, highlighting Cinemark’s strong second-quarter performance, with adjusted EBITDA exceeding expectations. Additionally, Cinemark has entered into agreements to unwind and terminate warrant transactions related to its 4.50% Convertible Senior Notes due 2025. These agreements were disclosed in a filing with the Securities and Exchange Commission.
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