09:11 AM EDT, 07/18/2025 (MT Newswires) -- Marcus (MCS) shares are seen as undervalued and are set to benefit from a "more consistent" slate of theatrical releases over the next few quarters, Wedbush said in a note Friday.

The brokerage said it expects consistent box office growth through 2026, followed by stable, low-to-mid single-digit growth starting in 2027.

Wedbush said that long-term catalysts include potential dividend increases, share buybacks, and strategic mergers and acquisitions, all supported by a "strong" balance sheet and no major debt maturities until 2027. The brokerage also said that Marcus also owns most of its properties, giving it flexibility to monetize real estate if needed.

Marcus' market share of North American theatrical ticket sales historically ranged from 2.5% to 2.6%, and Wedbush said the company is well-positioned to maintain its market share in the current industry dynamics.

Wedbush analysts said they expect Marcus to report "strong" Q2 results in August, helped by a 37% rise in North American box office sales from a year earlier.

Wedbush initiated coverage on the stock with an outperform rating and a $24 price target.

Shares were 1.2% higher in recent premarket activity.