Analysts at Canaccord Genuity reiterated their 245.0p target price on cinema operator Everyman Media Group on Friday after the firm revealed it had delivered a “strong end to the year”.
Canaccord Genuity said the stronger-than-expected performance across December had resulted in further upgrades to its full-year estimates for both the group’s revenue and adjusted underlying earnings forecasts, upping 2021 revenue forecasts by 5% to £48.7m and adjusted EBITDA by 19% to £8.3m.
The Canadian bank also stated that Everyman’s performance in recent weeks had been “very encouraging”, especially in the face of the emergence of the Covid-19 Omicron variant and the implementation of Downing Street’s Plan B measures to curb its spread.
“We have previously highlighted the growth opportunity available to the group, including a number of new site openings over the coming 24 months, and believe EMAN looks well placed for future growth. The film slate for the year ahead is also exciting and varied,” said Canaccord, which reiterated its ‘buy’ rating on the stock.
“At this stage, we conservatively leave outer year forecasts unchanged, which assume no further Covid-19 restrictions, albeit we remain cognisant that the situation remains fluid with a degree of uncertainty.”
