What To Know About Wells Fargo's Downgrade of Cinemark Hldgs
Portfolio Pulse from Benzinga Insights
Wells Fargo downgraded Cinemark Holdings (CNK) to Underweight from an unspecified previous rating, reducing the price target from $16.00 to $13.00. Following the downgrade, CNK shares dropped 6.1% to $14.02. The new price target suggests a further potential decline of 7.28%. Cinemark operates 518 theaters with 5,847 screens primarily in midsize U.S. cities and suburbs, earning revenue from box office, concessions, advertising, and other streams.
December 20, 2023 | 5:00 pm
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Wells Fargo downgraded Cinemark Holdings to Underweight and lowered the price target to $13, indicating a potential 7.28% downside from the current price.
The downgrade by Wells Fargo is a direct negative sentiment towards CNK's stock, suggesting that the bank's analysts expect underperformance relative to the market or sector. This bearish outlook, combined with the lowered price target, is likely to influence investor perception and could lead to a short-term decline in CNK's stock price. The recent 6.1% drop in share price following the downgrade announcement further supports the expectation of a negative impact.
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IMPORTANCE 85
RELEVANCE 100