Cinemark falls as JP Morgan downgrades on Hollywood strike

Cinemark Holdings

19/07/2023 11:06

** Shares of cinema operator Cinemark Holdings  CNK.N  fall
3.77% to $14.82 premarket
    ** JP Morgan downgrades CNK to "neutral" from "overweight",
reduces PT to $18 from $21
    ** Brokerage says The Screen Actors Guild – American
Federation of Television and Radio Artists (SAG-AFTRA) strike
could limit visibility into co's gross revenue 
    ** JPM notes that SAG-AFTRA rules for the current strike
prevents actors from promoting movies through interviews,
appearances, and social media - creating a demand headwind
    ** "While we don't think the strike will impact demand in
the very near term, we do see potential risk to films dated for
late summer/early fall, which could have the compounding effect
of slowing box office momentum ahead of 2024," says JPM
    ** Brokerage reduces its Q2 revenue/EBITDA estimates, citing
box office underperformance in the quarter
    ** Six of 12 brokerages rate the stock "buy" or higher, five
"hold" and one "sell"; their median PT is $18.5 - Refinitiv 
    ** As of last close, stock had risen 77.8% YTD

 (Reporting by Shashwat Chauhan in Bengaluru)
 ((Shashwat.Chauhan@thomsonreuters.com;))