The Knoxville-based movie theater company will be benefited by its increased premium seating targets, Credit Suisse said. Regal's management increased its 2017 premium screen count guidance by about 10%, according to the firm.
Additionally, U.S. movie exhibitor companies will receive a boost in 2016 from increased attendance and an improved film rental margin profile, Credit Suisse said.
"Early 2016 successes by 'Deadpool' and 'Zootopia' give us confidence that the year may surprise to the upside," the firm added.
Regal stock is up by 0.52% to $21.25 in early-morning trading on Tuesday.
Separately, 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.
TheStreet Ratings rates this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and poor profit margins.
You can view the full analysis from the report here: RGC