Barclays upgrades Cineworld to 'overweight' as shares rise.

5th Aug 2015 13:42

(ShareCast News) - Shares in movie theatre operator Cineworld rose as Barclays raised its rating for the stock to 'overweight' and upped its price target to 580p from 325p.Cineworld shares traded at 522.50p at 1359p, up by 1.65%.Analysts at Barclays said Cineworld was in a 'sweet spot' as the company had low cost headwinds.Industry supply growth was low, especially in Eastern Europe, analysts said, while Cineworld was adding screens to its portfolio.Demand appeared robust,given the film release schedule for 2015 and 2016, analysts said, and the cost outlook was benign as the new living wage would have minimal impact as wages were only 14% of total costs.Barclays said the company also had initiatives such as join Starbucks partnerships which could be rolled out about half the UK cinemas.