Cineplex Price Target Raised to $16 at TD

09:01 AM EDT, 08/16/2024 (MT Newswires) -- TD Securities raised its price target on Cineplex Inc. (CGX.TO) to $16 from $14 on Friday.

Analyst Derek J. Lessard maintained a Buy rating on shares of the Canadian operator of movie theater and family entertainment centres.

Lessard said CGX shares have rebounded 13% following the company's share buyback program announcement last week, but they trail Cinemark Holdings Inc.'s (CNK) more than 200% run since January 2023 (versus 30% for CGX).

"In addition to the healthier balance sheet, given the better visibility on film releases we expect a material improvement in profitability (and free cash flow) going forward, which should lift valuation and push the share price closer to our new street-high $16 target," the analyst said in a note to clients.

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