BofA’s Hartnett says concentrated U.S. stock returns are likely to persist
Investing.com - Benchmark has reiterated its Buy rating and $7.00 price target on National CineMedia (NASDAQ:NCMI), representing a 45% upside from the current price of $4.83. The stock, which has declined 34.6% over the past six months, is currently trading below its InvestingPro Fair Value, despite showing revenue growth of 13.34% in the last twelve months.
The research firm highlighted that the fourth quarter historically represents a strong period for both advertising demand and theatrical attendance, which could benefit the cinema advertising network operator. While the company posted negative earnings of $0.21 per share in the last twelve months, InvestingPro analysis reveals management has been actively buying back shares, potentially signaling confidence in the company’s future prospects.
Benchmark pointed to upcoming major film releases including "Wicked," "Zootopia," and "Avatar: Fire and Ash" as catalysts expected to drive continued box office momentum and renewed media buyer engagement.
Looking further ahead, the firm noted that the 2026 film slate appears "exceptional," with wide-release volume expected to approach pre-pandemic levels.
These factors are anticipated to drive further attendance gains and improve advertiser sentiment and demand recovery across both national and local advertising channels, according to Benchmark’s analysis.
In other recent news, National CineMedia reported a decrease in revenue for the second quarter of 2025, with figures down 5% year-over-year to $51.8 million. The company’s adjusted operating income before depreciation and amortization (OIBDA) also experienced a significant decline, falling to $700,000 from $7.6 million in the previous year. Despite these financial setbacks, National CineMedia has been focusing on innovation with new product offerings and strategic partnerships. Additionally, the company has reinstated its quarterly dividend, which may interest investors. These developments highlight the company’s efforts to navigate challenging financial conditions while maintaining shareholder value.
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