Stock Picks: Bristol-Myers, Imax

Plus Wall Street analyst opinions on Carmike Cinemas, Regal Entertainment, and Sanmina-SCI

Bristol-Myers Squibb (BMY))

Morgan Stanley resumes coverage with equal-weight

Morgan Stanley analyst David Risinger resumed coverage of Bristol Myers Squibb with an equal-weight rating on Dec. 28, saying the drugmaker trades at a 35% premium to its major U.S. pharmaceutical peers based on its price-to-earnings ratio.

"The majority of the premium reflects its attractive pipeline, in our view," said Risinger in a note. "We also have high regard for management, given its strategic mindset, which we think is also a factor in the P/E premium."

The analyst identified four key events for the company's drug pipeline: The survival data for the company's Ipilimumab compound for treatment of melanoma (Risinger estimates 50% odds of success); an FDA decision on belatacept for transplant on May 1 (75% odds); additional Phase III data on dapagliflozin for diabetes) in June (Risinger sees 40% odds of launch); and atrial fibrillation data for Johnson & Johnson's Xarelto in late 2010, expected before data for Bristol-Myers' competing apixaban in mid-2011.

The analyst has a $26 price target on Bristol-Myers shares.

Regal Entertainment Group (RGC)

Carmike Cinemas Inc. (CKEC)

Cinemark Holdings Inc. (CNK)

Merriman Curhan Ford rates each buy

Imax Corp. (IMAX)

Merriman Curhan Ford rates hold

U.S. movie theater chains should see a jump in box office revenue for the fourth quarter after moviegoers flocked to high-profile films over the holiday weekend, Merriman Curhan Ford analyst Eric Wold said on Dec. 28.

Box office sales totaled $278 million this past weekend, breaking the previous weekend record of $253 million set in July. It was the second week in theaters for James Cameron's "Avatar." New openings included "Sherlock Holmes," "Alvin and the Chipmunks: The Squeakquel" and "It's Complicated."

Wold said three of the biggest theater chains -- Regal Entertainment Group, Carmike Cinemas Inc. and Cinemark Holdings Inc. -- should see a boost in fourth-quarter sales.

Wold, who has a buy rating on all three companies, expects them to post 9 percent increases in box office sales per screen from the same quarter a year ago. He said Imax Corp. should have a better quarter than previously expected. He estimates the company's jumbo screens will draw about $82 million in box office sales for the fourth quarter, up from a previous forecast of $70 million.

Sanmina-SCI (SANM)

Standard & Poor's Equity Research maintains buy

S&P equity analyst Thomas Smith said in a Dec. 28 note that he believes Sanmina-SCI will benefit from a cyclical upturn in the electronic manufacturing services (EMS) industry that he projects for 2010 and 2011. The analyst said reports from Sanmina's peers indicate industry demand is beginning to recover from a deep downturn. Smith also thinks recent restructuring efforts should aid Sanmina's margins.

Smith maintained his operating earnings per share estimates of 55 cents for fiscal 2010 (ending September) and 90 cents for fiscal 2011. He raised his 12-month target price to $13 from $11 on the "volatile" shares.

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