Reiterate Buy on Improving Fundamentals Despite No Strategic Update

Research evidence excerpt

Reiterate Buy on Improving Fundamentals Despite No Strategic Update

Media

Cineplex Inc.

TD SECURITIES INC. - CANADA ESTIMATE CHANGES

May 11, 2026

Price: C$10.77 (05/11/2026) Reiterate Buy on Improving Fundamentals

Price Target: C$16.00 Despite No Strategic Update

BUY (1)

ESG SCORE: 45/100

Derek J. Lessard^ THE TD COWEN INSIGHT

514 289 0384

CGX shares fell 8% today after a 28% rally since the February low. Based on inbound calls,

derek.lessard@tdsecurities.com

investors were clearly hoping for positive commentary on recent unsubstantiated media

Cheryl Zhang, CFA^ reports around a potential sale or, at minimum, a strategic review—neither occurred. That

416 983 2755 said, fundamentals remain intact and, with the industry outlook improving, we view the

cheryl.zhang@tdsecurities.com

pullback as an attractive buying opportunity.

Key Data

Symbol TSX: CGX-T See our quick take this morning (link) for our initial thoughts on the quarter.

12-Month Div (Est.): C$0.00

Impact: NEUTRAL

12-Month Total

48.6%

Return:

Positive industry developments support long-term box office growth. At CinemaCon

52-Week Range: C$12.65-C$9.24

last month, studios reaffirmed their commitment to theatrical releases, with Amazon

Market Cap: C$683.5MM

reiterating plans for 15+ releases annually and major studios maintaining 45+ day windows.

Net Debt (MM): C$1,659.7

Moreover, Amazon MGM delayed Project Hail Mary’s streaming debut after strong theatrical

Dil. Shares Out (MM): 63.5

performance, while Netflix announced a 49-day window for Narnia. In our view, this

Float Shares (mm): 62.5

underscores the power of theatrical releases in driving financial performance. Additionally,

Float Cap ($mm): C$673 tentative agreements have been reached between U.S. actors and writers guilds and major