Breaking Stories

Goldman downgrades Imax and Cinemark to sell, says theater stock rebound has gone too far

The Regal Irvine Spectrum has reopened with a new high-tech look including the dramatic hallway lighting leading to the IMAX theater on September 17, 2020 in Irvine, California.

Gina Ferazzi | Los Angeles Times | Getty Images

The market appears to be too optimistic about the recovery for movie theaters and investors should dump their positions in Imax and Cinemark, according to Goldman Sachs.

Theaters are coming off their best weekend since the pandemic hit the U.S., with the success “A Quiet Place Part II” helping the industry generate more than $100 million over four days. The move made $5.3 million at Imax alone, according to the theater company.

However, analyst Michael Ng downgraded Imax and Cinemark to sell from neutral, saying in a note to clients on Wednesday that the stocks appeared overvalued and investors should look for entertainment exposure in other sectors.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *