Marcus Corporation Shares Poised for Recovery, Analyst Says
- A recent report suggests that the shares of a movie theater chain could rise by over 45%, despite experiencing a decline throughout the year.
- This positive outlook from Benchmark Capital highlights potential recovery within the entertainment sector.
- Investors may be encouraged by this forecast as they consider the long-term prospects of the movie theater industry.
Investors are being encouraged to consider Marcus Corporation shares as the film industry shows signs of recovery, according to Benchmark analyst Mike Hickey. In a recent report, Hickey identified Marcus as a top investment idea for 2024, setting a price target of $18, which suggests a potential increase of 45.4% from the stock's closing price last week. Despite a challenging year where Marcus shares have dropped over 13%, Hickey believes the current valuation presents a favorable buying opportunity compared to competitors like Cinemark and Imax, which have seen significant gains of 59% and 36%, respectively. Hickey emphasized that the market should not overlook Marcus's valuation, as the company is well-positioned to capitalize on the resurgence of film products and overall market growth. He acknowledged that the stock's performance has been impacted by a disappointing second-quarter box office, but highlighted upcoming releases such as "Deadpool & Wolverine" as potential catalysts for recovery. Additionally, Hickey noted that Marcus's recent removal from the S&P 600 and its repurchase of convertible notes have contributed to its stock struggles. However, he pointed to the company's expansion efforts, including the recent acquisition and reopening of a Minnesota theater under the Marcus brand, as signs of optimism for future growth. As Marcus Corporation prepares to report its earnings on Thursday, investors are keenly watching for indicators of the company's recovery trajectory in the evolving film landscape.