Cineplex (TSE:CGX) Price Target Increased to C$12.50 by Analysts at BMO Capital Markets

Cineplex Inc. (TSX: CGCX) is a Canadian media and entertainment company that operates in various segments such as cinema, amusement parks, and gaming. The company's flagship business is its cinema segment, which includes 164 theatres with a total of 1,350 screens across Canada and the United States.

On August 27, 2021, BMO Capital Markets analysts increased their price target for Cineplex TSECGX from C$10.00 to C$12.50. The analysts cited several factors that contributed to this increase in the price target, including the company's strong financial performance, its ability to adapt to changing consumer preferences, and its potential growth opportunities in the gaming industry.

According to BMO Capital Markets, Cineplex has consistently delivered strong financial results, with revenue growth of 17% in the second quarter of 2021 compared to the same period last year. The company's cinema segment has also shown resilience during the COVID-19 pandemic, with attendance levels gradually improving as more people get vaccinated and restrictions are lifted.

In addition to its cinema business, Cineplex is also expanding its presence in the gaming industry. The company recently acquired a 30% stake in PlayMGM, a joint venture between MGM Resorts and Gaming Innovation Group that operates online gaming platforms in the United States. This acquisition provides Cineplex with an opportunity to tap into the growing online gaming market and diversify its revenue streams.

Overall, BMO Capital Markets believes that Cineplex TSECGX is well-positioned for long-term growth, given its strong financial performance, adaptability, and potential growth opportunities in the gaming industry.