Broker snap: Canaccord lifts Cineworld target after strong H1

15th Aug 2013 10:55

Canaccord Genuity has hiked its target price for cinema operator Cineworld after its strong first-half report on Thursday, saying that outlook for the rest of the year looks bright.The target price has been raised from 360p to 450p and the broker's 'buy' recommendation remains unchanged.Canaccord said that the interim results were strong across the board with revenues up 21.9%, EBITDA up 22.1% and pre-tax profit up 32.6%. Market share meanwhile grew to 27.7% with the addition of Picturehouse acquired last year.Going into the third quarter, the broker said that while the sunny weather isn't helpful, last year was weak given the Olympics."We are maintaining forecasts ahead of Q4 where the comparatives are more challenging but after such a strong H1, confidence in estimates is high," said analyst Wayne Brown.He also added that the calendar for film releases in the second half is strong with 3D titles including Despicable Me 2, Monsters University, The Wolverine and the second instalment of the The Hobbit trilogy, The Hobbit: The Desolation of Smaug."The shares have been strong performers but we feel the improving macro and micro signals should lead to upgrades," Brown said.Despite the positive comments, the share price was down 0.38% at 393p by 11:00 on Thursday.BC