BofA update shows where active managers are putting money
Investing.com - Roth/MKM has reduced its price target on Cinemark Holdings (NYSE:CNK) to $34.00 from $36.00 while maintaining a Buy rating on the stock. The target remains well above the current trading price of $25.41, with InvestingPro data showing the stock has declined over 8% in the past week.
The firm cited expectations for a softer third quarter performance but expressed optimism about a strong fourth-quarter rebound that would continue into 2026.
Roth/MKM views Cinemark as an "attractive, defensive asset" positioned within what it describes as a 2+ year positive content cycle for the movie theater industry.
The firm’s analysis suggests that as the box office grows, Cinemark’s margins should expand and cash flow should increase, potentially leading to higher capital returns for shareholders.
The new $34 price target is based on 8x Roth/MKM’s projected 2026 adjusted EBITDA for the cinema chain operator.
In other recent news, Cinemark Holdings reported its second-quarter earnings for 2025, which did not meet Wall Street expectations. The company posted an earnings per share (EPS) of $0.63, falling short of the forecasted $0.7052 by 10.66%. Revenue was slightly below projections, totaling $940.5 million against a forecast of $942.98 million. Despite this, Benchmark has reiterated its Buy rating on Cinemark stock with a price target of $35.00, highlighting the company’s strong performance in other areas. Cinemark’s adjusted EBITDA came in at $232 million, surpassing the consensus expectation of $229 million, though revenue was slightly under the $943 million consensus estimate. These developments reflect the latest updates on Cinemark’s financial performance and analyst outlook.
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