Numis and Peel Hunt positive on Cineworld

Analysts at Numis and Peel Hunt reacted positively to Cineworld's latest interims.

The former highlighted indications from management that it was reviewing "further integration benefit opportunities" from its recent acquisition of Regal in the US, adding that following a "good" start to the second half for the company, they now saw "upside risk" versus the consensus view as the year progresses.

Numis estimated that every $10.0m in additional synergies would add roughly 2% to the firm's earnings per share.

They also pointed out the scope for the shares to appear even cheaper as consensus estimates "rebase" from Sterling to the US dollar.

However, they kept their target price at 328p.

Over at Peel Hunt on the other hand, the target price for the shares was raised, from 300p to 320p, with the recommendation kept at 'add'.

On the back of the company's "strong" first half performance in the US, the broker raised its full-year forecasts by 6%.

They too picked-up on management's comments regarding existing margin for further opportunities versus their existing target for synergies and pointed out how Cineworld was continuing to roll-out its premium product.

"Our upgrade reflects Regal, representing almost three-quarters of the company, trading materially ahead of our 4.7% forecast growth in box office."