Thursday, July 3, 2025

Cineplex: Canaccord Lowers Target To $17 From $19

On February 11th, Cineplex Inc (TSX: CGX) reported its fourth quarter financial results. The company saw its revenues grow to $300 million, up almost 20% quarter over quarter but below the $443 million it saw during the December 2019 quarter. Cineplex’s gross profits came in at $145.8 million, up quarter over quarter but below the $226 million during the December 2019 quarter.

The company saw a negative operating profit compared to the positive $37.26 million in the December 2019 quarter. While net income came in at negative $21.78 million, up 35% quarter over quarter but below the positive number it reported during the December 2019 quarter. Theatre attendance grew to 20.1 million while box office and concession revenues per person for the quarter were $12.29 and $7.49 respectively.

Seven analysts cover Cineplex with the average 12-month price target sitting at C$17.79, or a 32% upside to the current stock price. Out of the 7 analysts, 1 has a strong buy rating, 4 analysts have buy ratings and 2 analysts have hold rating. The street high sits at C$20, which represents a 50% upside from the current stock price. The lowest 12-month price target sits at C$15.

Canaccord Genuity lowered their 12-month price target on Cineplex to C$17 from C$19 and reiterated their speculative buy rating on the name. They say that even though the company reported worse than expected numbers, the company is seeing “resilient underlying returns.”

For the results, Canaccord expected Cineplex to report revenues of $338.8 million. Of the $300.0 million in revenues reported, box office revenues came in $125.9 million or 69% of the pre-pandemic levels. This is below Canaccord’s 80% estimate, though management noted that the month of October was at 80% of the pre-pandemic level.

Canaccord gives a few key takeaways from the financial results and earnings call, where they say that P1AG saw good resiliency with revenues at 80% of pre-pandemic levels. Additionally, the company saw media revenues grow to $32.5 million, only slightly below their $37.2 million estimate, and that the company generated an average monthly cash flow of $439,000. Net debt came in at $483.1 million, slightly higher than the $480.5 million last quarter. Most notably, the bank covenant of 3.75x debt/adjusted EBITDA has been reinstated and has been extended until the second quarter of 2022.


Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Gold Drilling Scaled to 60,000 Meters: How Big Can This Get? | Roger Rosmus – Goliath Resources

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

Great Bear: Canaccord Model Is Based On “Initial Applied Resource Of 4 Million Gold Ounces”

Yesterday, Great Bear Resources (TSXV: GBR) reported results from its ongoing exploration program at their...

Thursday, December 10, 2020, 11:21:00 AM

CloudMD: Canaccord Reiterates $3.25 Price Target Following Acquisition

This morning, CloudMD Software & Services (TSXV: DOC) announced that they purchased Rx Infinity, an...

Wednesday, January 27, 2021, 04:01:00 PM

Canaccord: “Gold’s Ready For Liftoff”

On Monday, Canaccord put out a precious metals industry update, saying, “The war in Ukraine...

Wednesday, March 9, 2022, 05:08:00 PM

Uranium Royalty Corp: Canaccord Lifts Price Target To $4.25

Uranium Royalty Corp (TSXV: URC) recently closed their C$37 million financing, allowing Canaccord Genuity to...

Saturday, May 22, 2021, 02:04:00 PM

Cineworld Sees Bankruptcy Court Award Immediate US$785 Million ‘First Day’ Relief

British cinema chain Cineworld Group gets its ‘first day’ relief in the hopes to satisfy...

Friday, September 9, 2022, 10:29:00 AM