The firm cited the movie theater chain's stronger than expected performance in Latin America and potential capital return acceleration.
Shares of Cinemark closed at $35.75 yesterday.
Separately, TheStreet Ratings team rates CINEMARK HOLDINGS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CINEMARK HOLDINGS INC (CNK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, compelling growth in net income, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 254.0% when compared to the same quarter one year prior, rising from $20.27 million to $71.73 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Media industry and the overall market, CINEMARK HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- Net operating cash flow has increased to $97.87 million or 38.04% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 14.05%.
- You can view the full analysis from the report here: CNK Ratings Report
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