10:59 AM EDT, 09/26/2024 (MT Newswires) -- Cinemark Holdings' ( CNK ) post-pandemic recovery faced delays due to a strike by the American actors' union SAG-AFTRA last year, which impacted results through mid-2024, however, the company is expected to hold or grow market share in Q4 and 2025, Wedbush said in a report Thursday.

The film industry is expected to see a rebound driven by a higher volume of releases and content with Cinemark expected to "hold on to or improve market share as it leverages its Movie Club members, driving them more frequently to its high-quality theaters," according to the report.

"We expect Cinemark to leverage its over 21 million global members in its loyalty programs, and its 1.3 million Movie Club members to maintain or gain further market share in 2025," Wedbush said.

The firm said that the company preserved cash during the slowdown, which gives it flexibility as the industry rebounds.

Cinemark is likely to begin returning cash to shareholders by year-end, with a potential dividend reinstatement in Q1 2025 that will position the company favorably as competition increases, Wedbush added.

The firm reiterated its outperform rating on Cinemark's stock and maintained a $31 price target.

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