Why Cinemark Was a Star Stock on Wednesday
The market's spotlight shone on Cinemark Holdings (NYSE: CNK) on Wednesday. One pundit following the company's stock upgraded his recommendation, and on the back of that, its price rose by 1.4%. In pure percentage terms, that was almost exactly double the 0.74% increase of the S&P 500 index on the day.
The analyst pulling the upgrade lever was B. Riley's Eric Wold. For him, Cinemark is now a buy with a price target of $23 per share. Previous to that, he ranked the movie theater operator only as a neutral, at a $20 price target.
Wold explained in a new research note that "we felt compelled to increase the valuation discount rate until we adjusted our 2024 estimates to reflect continued film slate risk stemming from the Writers Guild of America (WGA) strike."
Source Fool.com
