Sunday, June 1, 2025

Latest

Cineplex: Canaccord Pegs Chance Of $1.24 Billion In Damages Being Collected At 25%

On December 15th, Cineplex Inc. (TSX: CGX) was awarded roughly $1.24 billion in damages from Cineworld Group over a botched deal to sell to Cineworld. The Ontario Superior Court said that Cineworld acted in bad faith and breached the terms of the deal, which fell apart during the early months of the pandemic. Cineworld said in a news release that they plan on appealing the decision.

Cineplex’s stock jumped over 20% to C$14.35, into the open but since then has given up roughly half of the gain, ending the week at $13.03.

Cineplex currently has 7 analysts covering the stock with an average 12-month price target of C$17.79, a 38% upside to the current stock price. Out of the 7 analysts, 1 has a strong buy rating, 4 have buy ratings and the last 2 analysts have hold ratings. The street high sits at C$20 from Scotiabank while the lowest comes in at C$13.

In Canaccord’s note, they raise their 12-month price target to C$19 from C$15 and upgrade Cineplex to a speculative buy rating from hold. They say that the $1.24 billion translates roughly to $19.60 per share, or $13.45 per share on a diluted basis.

They also say that they expect an appeal to be filled by Cineworld. Cineworld has 30 days to appeal the decision, Canaccord expects this process not to be a “multi-year process” as Cineworld can only appeal “specific points of law.”

Canaccord only puts the odds that Cineplex actually gets the $1.24 billion at 25%. They believe that the enforcement of this court ruling might not be the greatest. Pointing to the leverage Cineworld currently holds, with roughly $8.35 billion in net debt, they write “We believe that if Cineworld does not honour the court awarded damages, Cineplex may then have to seek enforcement in the UK courts, which in turn opens up a series of new questions and uncertainties.”


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.

Leave a Reply

Video Articles

How a Single Deal Turned 2 ‘Dead’ Mines into a $2B Project | Canadian Copper PEA – Simon Quick

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Alamos Gold Q1 Earnings: The Inside Scoop

Recommended

Silver47 x Summa Silver: Creating An Explorer With A Billion Ounce Goal

Canadian Copper: The $172M Combined Strategy PEA

Related News

Cineplex: Canaccord Lowers Target To $17 From $19

On February 11th, Cineplex Inc (TSX: CGX) reported its fourth quarter financial results. The company...

Tuesday, February 15, 2022, 05:17:00 PM

Canopy Growth Sees Canaccord Cut Price Target To Just $4.50 After Terrible Q4 Results

On May 27, Canopy Growth (TSX: WEED) reported its fiscal fourth-quarter financial results for the...

Sunday, June 5, 2022, 11:18:00 AM

Verano Holdings: Analyst Ratings Nearly Unchanged After Q2 Earnings

On August 10, Verano Holdings (CSE: VRNO) reported their second quarter financial results. The company...

Sunday, August 15, 2021, 02:04:00 PM

Verano: Canaccord Reiterates Ratings Following Pennsylvania Purchases

On April 22nd, Verano Holdings (CSE: VRNO) announced that they acquired two cultivation licenses in...

Saturday, April 24, 2021, 01:25:00 PM

Else Nutrition: Canaccord Cuts Target To $2.00 After Financing

On June 22, Else Nutrition (TSX: BABY) announced that it raised $7.29 million by selling...

Monday, July 4, 2022, 04:33:00 PM