Shares of Regal Entertainment Group were up more than 3% and Cinemark Holdings Inc. shares were up more than 2% after Morgan Stanley analyst Ben Swinburne upgraded both stocks to equal weight from underweight on Thursday, just ahead of the release of the much-anticipated “Blade Runner 2049.” Swinburne wrote in a note to investors that fears concerning the implications of a historically disappointing summer box office were overblown. The summer box office season — an important period for the industry — finished down more than 15% compared with the previous year. Swinburne also believes concerns that premium video on demand will significantly shrink theatrical windows are priced into the stocks. The box office performed better than expected in the third quarter thanks to the surprise performance of “It,” and Swinburne sees upside for the fourth quarter. AMC Entertainment Holdings Inc. shares also received a boost, gaining nearly 3%. Shares of Regal Entertainment have declined close to 16% in the year to date and Cinemark shares are down less than 1%, while the S&P 500 index is up nearly 14% and the Dow Jones Industrial Average is up nearly 15% during the same period.
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