Aug 25 (Reuters) - Windward Management has called on

cinema theater operator Cineplex ( CPXGF ) to buy back more

shares and sell non-core assets, pointing to a recovering box

office as audiences return to theaters and demand rises for

premium movie experiences.

Canada's largest movie theater chain is now at an

"inflection point," the activist investor said in a letter on

Monday, highlighting a slate of upcoming movies and recovering

attendance as key drivers fueling a rebound from the second half

of 2025 through 2027.

However, Windward, which has an about 7% stake in the

company, said there was a lack of urgency in returning capital

to shareholders, citing an underutilized buyback program despite

a strengthening balance sheet and improving box office trends.

"With shares trading at a high-teens unlevered free cash

flow yield and the industry at a point of inflection, time is of

the essence," the investor said.

Cineplex ( CPXGF ), whose stock was up more than 5% on Monday, did not

immediately respond to a request for comment.

Windward, which also said the company should prepare for an

outright sale, projected the stock could exceed C$30 by the end

of 2026, implying nearly 200% upside, if Cineplex ( CPXGF ) pursues a

robust buyback program paired with asset sales.

The activist investor recommended exploring sale of

Cineplex's ( CPXGF ) digital media unit and remaining stakes in Scene+

loyalty program, which could raise more than C$220 million

($159 million) and enable a substantial tender offer.

Shares of Cineplex ( CPXGF ) have underperformed the broader market,

especially since the pandemic-triggered collapse of Cineworld's

C$2.8 billion takeover plan in 2020.

The stock has traded well below the offer price of C$34

since then and was down around 7% so far this year. Since 2020,

Canada's benchmark S&P/TSX Composite Index has soared

more than 65%.

($1 = 1.3817 Canadian dollars)