A movie theater chain you’ve likely never heard of is a catch-up trade, according to Benchmark

Pelican Press · 2024-07-29T16:05:45+0000

This is the hidden content, please Sign In or Sign Up A movie theater chain you’ve likely never heard of is a catch-up trade, according to Benchmark Investors should snap up beat-down Marcus Corp. shares as the film industry continues rebounding, according to Benchmark. Analyst Mike Hickey named Marcus a top idea for 2024. Hickey’s $18 price target reflects the potential for shares to soar 45.4% from where the stock finished last week. The stock has notably underperformed other movie theater-related stocks this year, which Hickey said has given investors a good spot to buy in at. While Marcus stock has slipped more than 13% in 2024, rivals Cinemark and Imax have climbed more than 59% and 36%, respectively. “We believe Marcus offers a compelling catch-up trade,” Hickey told clients in a Sunday note. And there’s “no reason for the market to abandon the company’s valuation, as it is well-positioned to benefit from the strong return of film products and market growth.” MCS CNK,IMAX YTD mountain Marcus vs. Cinemark and Imax in 2024 Notably, Marcus is much smaller than these other names. Marcus has a market cap under $500 million, while Imax and Cinemark are worth more than $1 billion and $2.7 billion, respectively. Like other movie theater operators, Hickey said Marcus took a hit with the pandemic and, more recently, the Hollywood strikes last summer that ground production to a halt. He noted the stock’s valuation has been hurt by a tough second-quarter box office. However, he said there’s bright spots ahead with the performance of “Deadpool & Wolverine.” Marcus’ removal from the S & P 600 and its repurchase of convertible notes also negatively impacted the stock, Hickey said. Hickey pointed to expansion plans within the film business as a reason for optimism. Specifically, he cited the takeover of a Minnesota theater, which reopened under the Marcus brand earlier this month. Marcus, which also operates hotels and restaurants, rose more than 1% on Monday. The Wisconsin-based company reports earnings on Thursday. This is the hidden content, please Sign In or Sign Up #movie #theater #chain #youve #heard #catchup #trade #Benchmark This is the hidden content, please Sign In or Sign Up This is the hidden content, please Sign In or Sign Up

By Pelican Press,
July 29, 2024 in World News

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Posted July 29, 2024

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