The Knoxville, TN-based company operates a movie theater chain in the U.S.
"The stock is trading at a meaningful premium to peers, likely reflecting support provided by its high dividend. Given its recent outperformance and our positive industry view as we move through 2016, we see less upside in Regal in the near-term than peers," the firm said in an analyst note.
RBC Capital's positive view of the movie industry in 2016 comes as it believes the 2017 box office is shaping up strongly, the relationship between film rents and box office concentration is better understood and some mergers and acquisitions are expected, but not at previous peak levels.
Shares of Regal Entertainment are declining by 2.14% to $16.94 at the start of trading on Tuesday.
Separately, TheStreet Ratings Team has a "hold" rating with a score of C on the stock.
The primary factors that have impacted the 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.
Among the primary strengths of the company is its revenue growth. At the same time, however, the team also finds weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.
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.
You can view the full analysis from the report here: RGCRGC data by YCharts