Analysts at Canaccord Genuity changed their rating on cinema operator Everyman Media from ‘under review’ to ‘buy’ on Tuesday, stating the group had “shaken but not stirred”.
Canaccord said after a “challenging” 18 months since the start of the Covid-19 pandemic, where the focus was on cost control and cash preservation, Everyman was now dialled in on recovery and the “significant growth potential” from the expansion of its portfolio.
The Canadian bank thinks the 2022 trading year will be “a year of recovery” but with “significantly improved profitability” when compared to 2020 and 2021, with trading expected to recover back to pre-pandemic levels thereafter.
Canaccord, which lowered its target price on the stock to 245.0p from its pre-review 300.0 price target, also highlighted that much work had been done to improve Everyman’s customer offer in recent months, including enhancements to its food and beverage service with kitchen upgrades and menu additions, alongside the start of a wider site refurbishment programme.
The analysts also pointed out that after the enforced closure of sites for much of the pandemic, there was now an “exciting and varied” slate of new and upcoming film releases over the final quarter of 2021 and into 2022, including the new James Bond title.
“With the focus now back on the growth potential of the brand in a post-Covid world, which should present some favourable property market conditions,” said Canaccord.
