MoviePass announced Thursday a new one-year promotions subscription service. According to one Wall Street analyst, Helios and Matheson Analytics Inc HMNY 4.13% will ride the MoviePass wave to a higher share price in the coming year.
The Analyst
Maxim Group analyst Brian Kinstlinger has a Buy rating and a $25 price target for Helios stock.
The Thesis
In a note on Thursday, Kinstlinger said Helios is making the right move by pushing hard to build subscriber numbers. Its new promotion gives users a one-month MoviePass subscription for just $89.95, or $6.95 per month. MoviePass already lowered its monthly rate from $29.99 to $9.99 back in August.
Kinstlinger estimates that MoviePass currently has between 750,000 and 800,000 subscribers and that each additional 100,000 subscribers will bring in $9 million in cash for the company.
“By speeding up subscriber acquisition, we believe MoviePass’ influence and positioning in the industry is strengthening,” Kinstlinger said. “In our view it is only a matter of time before studios and theaters alike begin negotiating partnerships.”
Kinstlinger estimates the new promotion will push MoviePass over the 1 million subscriber mark by the end of 2017 given the strong theatrical lineup headed into December. Once the service hits 2 million subscribers, Kinstlinger said theaters and studios will not be able to ignore it.
Maxim expects…
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