UPDATE: Caris & Company Upgrades Carmike Cinemas to Above Average

In a report published Monday, Caris & Company upgraded its rating on Carmike Cinemas (NASDAQ: CKEC) from Average to Above Average.

Caris & Company noted, “We are upgrading shares of CKEC from 3*/Average to 2*/Above Average. We believe that, in the midst of the stock price digesting the fact that FQ3 numbers are coming down, the market is not focusing on the accretion inherent within the Rave Cinemas LLC deal, which was announced on October 3, and which gets CKEC 251 additional screens. We believe this deal affords CKEC distinct advantages in concessions buyer power and economies of scale against the Studio system, and we are happy to take advantage of the market disconnect.”

Carmike Cinemas closed on Friday at $12.56.