Carmike Cinemas downgraded at Caris after big jump in stock price
By APThursday, April 8, 2010
Carmike Cinemas downgraded at Caris
NEW YORK — Caris & Co. downgraded Carmike Cinemas Inc. on Thursday as it called the theater operator’s stock overpriced following a “lightening-quick” rise over the past month or so.
In a client note, Caris analyst David Miller cut the stock to “Below Average” from “Average,” saying “shares look overpriced relative to current fundamentals.”
Miller also raised the possibility that movie studios will start asking for a bigger cut of box office returns from theater operators because of falling DVD sales.
Carmike shares began increasing last month after its fourth-quarter financial results topped Wall Street forecasts, helped by blockbuster releases including the 3-D epic “Avatar.”
Since fourth-quarter results were released, Carmike’s shares have climbed almost 75 percent. The stock fell 6 cents to $16.50 in midday trading Thursday.
