The Globe and Mail reports in its Friday, July 3, edition that Canaccord Genuity analyst Aravinda Galappatthige, seeing financing as the near-term focus, trimmed his target for Cineplex ($7.91) shares to $12 from $17, while maintaining a "speculative buy" rating. The Globe's David Leeder writes in the Eye On Equities column that analysts on average target the shares at $14.31. Mr. Galappatthige says in a note: "Our characterization of Cineplex is one of a degree of near-term uncertainty (around financing) which could lead to some volatility until the liquidity and balance sheet situation is stabilized. On the other hand, we see considerable upside potential to valuation as we consider the 2021 film slate, free cash-flow generation post 2020, topped with the optionality around the litigation against Cineworld and other strategic options." The Globe reported on May 21 that Mr. Galappatthige boosted rate to "speculative buy" from "hold." He said in the item, that he was issuing his upgrade despite lingering "uncertainty" from the both the impact of the COVID-19 pandemic and the status of its $2.8-billion acquisition by Britain-based Cineworld. The shares could then be had for $13.60.
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