And the Award Goes to?Cinemark

[Stocks-to-Watch]

The 83rd Annual Academy Awards are on Sunday, but Cinemark (CNK) is already a winner, according to Janney Montgomery Scott.

Today analyst Tony Wible upgraded the shares to Buy, with a fair value estimate of $23.50, given compelling risk/reward and the potential for accelerating growth.

In a research note out today, he cited a number of reasons for the upgrade: “1) market share gains, 2) accelerating 3D screen counts, 3) proprietary XD screen rollouts, 4) cost control, 5) a promising 2011 film slate, 6) ticket pricing restraint, and 7) exposure to high growth Latin American markets.”

He noted that while a weak film slate in the first quarter and a short video on demand window are concerns, the stock has already priced these issues in, and “may start to enjoy multiple expansion in the face of accelerating growth prospects.”

The shares closed up 1.2% in trading today, and were flat after hours.



Original Article Source by Barrons.com