AMC Entertainment announces a crucial financial restructuring deal aimed at recovery from the pandemic's impact on the box office.

Investing.com -- Deutsche Bank initiated coverage of Cinemark with a Buy rating and a $36 price target, citing an expanding film slate and industry normalization that should support a sustained box office recovery and stronger free cash flow. The firm sees roughly 25% upside from current levels and views Cinemark as well-positioned due to its U.S. and Latin American footprint and modern theater circuit. While the sector’s recovery from the pandemic had been progressing, the Hollywood strikes disrupted momentum through early 2025, particularly with fewer major studio releases. Deutsche Bank said second-quarter box office trends suggest a turning point, with results matching 2023 levels despite a lighter release calendar. The firm expects a fuller recovery to take hold in the second half of 2025 and into 2026 as studios ramp production and new distributors, including Amazon (NASDAQ:AMZN) MGM and A24, boost theatrical output. Amazon MGM alone is expected to add 14–16 theatrical releases per year by 2027, potentially restoring the number of wide releases to pre-pandemic levels. That increase, coupled with Cinemark’s operating leverage and market positioning, should drive double-digit free cash flow growth and stronger shareholder returns, according to the note. Cinemark shares have lagged the broader market in recent years but could benefit from a more stable industry backdrop and a larger, more consistent film pipeline, Deutsche Bank said.