Shares of Cinemark Holdings Inc.
CNK,
fell 3.2% in premarket trades Wednesday after J.P. Morgan downgraded the stock to neutral from overweight, citing the impact of the actors’ strike. J.P. Morgan also established a December 2024 price target of $18 for the movie theater operator, down from its December 2023 price target of $21. In a note, J.P. Morgan analyst David Karnovsky warned of the strike’s impact on film supply and box office, with production already shut down on several movies slated for release in the second half of 2024. “Absent a resolution, we expect the strike will remain an overhang to CNK shares and limit upside regardless of whether the box office outperforms near term (e.g., Barbie and Oppenheimer) or the company posts better than expected results,” he wrote.
