Cineworld Group shares: No bulls, just fence sitters


Cineworld Group PLC (LSE:CINE) is staging a Lazarus-like recovery thanks in part to the latest James Bond film ‘No Time to Die’, which could easily be the epitaph for the company, which the market perceived during the pandemic to be on its last legs.

The recovery in fortunes, however, doesn’t seem to be enough to get some of the fence-sitters out of Splinterville.

Barclays Capital is a case in point with its ‘equal weight’ stance and 115p a share price target.

Shouldn’t Cineworld be the classic recovery play as we return to normality and the popcorn and Cornetto munchers return to silver screens around the country?

Ah well, we thought so ….until we read Barclays’ analysis.

It ponders, without addressing the question definitively, whether the whole world of cinematic entertainment has changed unalterably in the last two years?

Could cinema groups be faced with a shorter release window, and how will this affect revenues, Barclays asks? Indeed, will the studios now focus on content for the streaming services, and by extension have our tastes changed in this regard (i.e. pro-streaming; agin picture halls)?

Answers on a postcard please, as they used to say as part of the BBC as a sign off to every competition.

In the meantime, here’s what the rest of the City thinks of Cineworld stock.

The majority of banks and brokers following the story are on that very crowded perch alongside Barclays.

Seven of the eight have ‘hold’ or ‘hold-type’ recommendations and there’s one ‘seller’. Nobody is ready to commit to ‘buying’ at this stage.


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