The Knoxville, TN-based company operates a movie theater chain in the U.S.
"RGC is a pure play on the domestic theater sector, which should benefit from large screen formats, recline seats, alcohol, expanded concessions, and mobile technology without having to worry about foreign exchange headwinds," the firm said in an analyst note.
These new opportunities and a robust film schedule will offset secular headwinds tied to the decline in attendance per screen, Drexel Hamilton added.
Investors will value the high 5% dividend yield, improved slate visibility and the lack of risk that affects other media sectors, such as television, the firm noted.
Shares of Regal Entertainment closed lower by 1.13% to $17.54 on Thursday.
Separately, TheStreet Ratings Team has a "hold" rating on the stock with a score of C. The primary factors that have impacted the rating are mixed. Among the primary strengths of the company is its revenue growth. At the same time, TheStreet finds weaknesses, including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: RGC
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.