Thursday, July 5, 2012

Cinemark, Regal: Janney Turns Cautious On Movie Theater Shrs

Cinemark (CNK) and Regal Cinema (RGC) shares are both selling off today after Janney Capital analyst Tony Wible downgraded both companies to Neutral from Hold.

“We continue to see value in the theater operators as they benefit from a strong 2011 film slate and the emerging digital/3D benefits,” he writes in a research note. “However, we believe the names will remain range-bound in light the weaker Q2 performance, disappointing tent pole performance and the emerging threat an early VOD window.”

Wible notes that the quarter is on pace to be down 3.7% from a year ago “after a string of disappointing results on major tent pole films.”

In today’s trading:

  • CNK is down 76 cents, or 4.8%, to $15.23.
  • RGC is down 82 cents, or 5.4%, to $14.24.

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