Thomas Weisel Partners Raise Cinemark Holdings (CNK) Price Target To $21

Thomas Weisel Partners analysts Benjamin Mogil and Benjamin Shapiro maintained their Overweight rating for shares of Cinemark Holdings Inc (NYSE: CNK) and raised the price target from $18 to $21.

The analysts said that many of the concerns over digital/3D roll out in theaters were unfounded.

Although wait times for digital projectors currently stand at 6 to 8 weeks, most of the first phase silver screens that are required for 3D viewing have already been installed.

They also said that concerns over the lower margin concerns related to a lower revenue share for 3D theaters was offset by the higher ticket prices.

The Thomas Weisel Partners analysts wrote, "we are of the view that some of the concerns over the digital/3D roll-out are unfounded based on our channel checks with a number of smaller exhibitors, technology manufacturers as well as our covered names. While there are digital projector wait times in the 6-8 week range, as our covered exhibitors have already installed the bulk of the first phase silver screens they require (the necessary add-on for 3D viewing) and so we anticipate that their digital/3D roll-out will be at the higher end of expectations."