Cineplex stock price target raised to C$14 by BMO as company sells digital media division

Published 17/10/2025, 13:58
Cineplex stock price target raised to C$14 by BMO as company sells digital media division

Investing.com - BMO Capital has raised its price target on Cineplex (TSX:CGX) to C$14.00 from C$13.00 while maintaining a Market Perform rating on the Canadian entertainment company’s stock.

The price target increase follows Cineplex’s announcement of a definitive agreement to sell its digital place-based media division to Creative Realities for $70 million in cash, representing a multiple of approximately 10 times earnings.

Cineplex reported its third-quarter 2025 box office revenues decreased 9% year-over-year to $159 million, which was largely in line with Street expectations but remained 10% below the company’s Q3 2019 results.

BMO Capital expects Cineplex’s fourth-quarter 2025 box office performance to exceed year-over-year comparisons, supported by three key film releases, while maintaining its full-year 2025 box office revenue estimates.

The investment firm adjusted its forecasts to reflect the divestiture of the digital media division, which is expected to be completed in the fourth quarter of 2025.

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