Analyst’s Box Office Outlook Sparks 3% Spike in Regal

Authored by Scott Goldberg on April 9, 2007 - 12:16pm.

Los Angeles – Soleil Research Associates upgraded shares of Regal Entertainment Group, a movie theater chain, to “buy” from “hold” on a strong box office outlook for 2007 today, causing shares of the company to rise 3%. Analyst Marla Backer cited a strong summer slate as a large part of her optimism.

DreamWorks Animation SKG Inc. will release Shrek the Third, Sony Corp. has Spiderman 3, and Walt Disney will have the third installment of Pirates of the Caribbean. All three movies have been box office hits in their previous two sequels.

Also central to Backer’s assessment of Regal was a positive outlook on three-dimensional movies. The company has the largest network of 3D screens.

Regal is also the beneficiary of a strong cash position, Backer said, because of its stake in National CineMedia Inc., a company that went public this year. She said Regal is now well positioned for acquisitions.

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http://tinyurl.com/2ojbaz (Reuters)