Canaccord lowers target price on Cineworld

Analysts at Canaccord Genuity lowered their target price on theatre operator Cineworld from 355p to 270p on Friday, noting the rough ride for investors may not yet be over.

Canaccord said it had been "painful" being a Cineworld investor over the last nine months and warned that it may get worse in the short-term, as its financial performance was impacted by a film slate that failed to deliver.

The Canadian broker Cineworld's stock was now the most shorted in the FTSE 250 - with 18% of the stock out on loan.

However, the analysts said notable poor admissions years were not uncommon.

"Looking forward, Cineworld's self-help agenda for Regal should continue to kick in as the Unlimited card gains traction and as the refurbishment programme gains momentum," said Canaccord.

Canaccord retained its 'buy' recommendation for Cineworld but lowered its target price to imply a 34% upside.

"Our new 270p target price is pitched just above the median of its US peers but well above AMC and well below IMAX, the two outliers.

The analysts also highlighted that further share price weakness could be the catalyst for a bid from Global City Holdings - the investment vehicle for the Greidinger family.