The fate of Cineworld PLC (LON:CINE) is still ‘finely balanced’, according to a note by JP Morgan Cazenove in the wake of its latest fundraiser.
The bank highlighted the picture house chain’s going concern statement that accompanied the prelims as indicative of the potential problems looming on the horizon.
One scenario cited in the company’s prospects assessment was a “severe, but plausible scenario”, which meant any delay to its re-opening plans would likely trigger a requirement for additional cash.
Reiterating its ‘neutral advice’, but raising its price target to 74p from 50p, JPMC added: “We believe Cineworld can exit COVID-19 with a higher quality estate, permanent cost savings, and potentially c10% of cinema sites not surviving the pandemic.
“Despite this, we see the story as finely-balanced, given the continued uncertainty around the structural outlook for the industry.”