Cinemark (NYSE:CNK) stock is in the news Friday after the movie theater chain was granted a rare double upgrade from Wells Fargo analyst Steven Cahall.
Wells Fargo bumped shares of CNK stock up from an “underweight” rating to an “overweight” rating. That’s worth noting as the analyst consensus rating for CNK shares is a hold based on 10 opinions.
To go along with that upgrade, Cahall increased the firm’s price target for CNK stock from $13 per share to $23. That’s a potential upside of 22.7% over its previous closing price. It’s also above the analyst consensus price prediction of $18.40 per share.
What’s Behind the CNK Stock Upgrade?
Here’s what the Wells Fargo analysts had to say about Cinemark in a note to clients obtained by StreetInsider:
“Q1 DBO came in 6% above our est. The beat wasn’t on a breakout performance, instead, several films outperformed — a sign that consumer demand is robust w/ legs to next year. CNK has lots of op leverage, and despite its YTD run the stock is still inexpensive.”
CNK stock is up 5.9% as of Friday morning with some 2.9 million shares traded. That’s closing in on its daily average trading volume of about 3 million shares.
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
