UPDATE: Barrington Research Upgrades National CineMedia Following Recent Price Weakness

In a report published Tuesday, Barrington Research analyst James C. Goss upgraded the rating on National CineMedia (NASDAQ: NCMI) from Market Perform to Outperform, and named a $21.00 price target.

In the report, Barrington Research noted, “We are upgrading our investment rating on NCMI to OUTPERFORM: We had maintained an OUTPERFORM rating on the stock earlier in the year, but decided to cut our rating after a positive move that we had felt took its price to within about 10% of our then-$17 target price. The stock continued its upward move to a level well beyond our target, attaining a price above $19 in recent weeks before a pullback to current levels. Even though we are actually targeting an earnings and cash flow progression somewhat short of our previous estimates, we are now becoming more encouraged in a couple of ways, and feel justified in taking a more aggressive stance once again. We are now using a 2014-based price target of $21, which provides upside of about 20%. In addition, we view NCMI as a stable franchise with built-in support from the three largest theatrical exhibitors, which own roughly half of the company. Further, the 4.7% yield adds significantly to the investment story.”

National CineMedia closed on Monday at $17.54.