The analyst firm upgraded National CineMedia to "buy" from "hold," setting a price target of $15 for the stock. Stifel analyst Benjamin Mogil said that everything that can go wrong for the company's stock already has.
Mogil wrote that National CineMedia's "current valuation basically implies a very small chance that NCM will be successful in its court case to merge with Screenvision. While not having a view on whether or not this is the case, we do believe that the risk/reward for this story has gotten better particularly with positive 4Q14 guidance and solid commentary on the upfront process."
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The upgrade comes a day after National CineMedia reported its third quarter results. The company reported earnings of 11 cents a share for the quarter, in-line with analysts' estimates. Revenue fell 25.4% year over year to $100.8 million in the quarter, below analysts' estimates of $103.63 million.
TheStreet Ratings team rates NATIONAL CINEMEDIA INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NATIONAL CINEMEDIA INC (NCMI) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, unimpressive growth in net income and feeble growth in the company's earnings per share."
You can view the full analysis from the report here: NCMI Ratings Report