Kinepolis to feed movie appetite - ING

Kinepolis NV

22/06/2021 10:07

** ING highlights the strength of Belgian cinema chain
Kinepolis'  KIPO.BR  rebound -- lifts target price by nearly 27%
to 62 euros with unchanged "buy" rating
    ** The broker notes the management's more aggressive plan
for a 15-20% higher EBITDA per visitor by end-2021 versus 2019,
which implies 2022 could deliver double positives - attendance
recovery and better operating leverage
    ** ING sees superior content among drivers of the rebound,
pointing out cinemas reopening in June is led by smart seating
and scheduling, with twice more blockbusters per month for the
next 18 months, starting from this summer
    ** "Customer surveys, pre sale and the success of
year-to-date blockbusters all bode well for pent-up demand in H2
2021, 2022," the broker says, confirming movie going appetite
    ** "We also look forward to a 2022 restart of M&A," ING
says, adding it's key for a rerating back to pre-COVID multiples
    ** Shares in Kinepolis, which at 0900 GMT are up 3%, have
gained 40% year-to-date still not reaching pre-pandemic highs

 (Reporting by Juliette Portala)
 ((juliette.portala@tr.com))