RealD Inc. (RLD:US), a provider of 3-D technology to cinemas, jumped the most since December after a Piper Jaffray & Co. analyst raised his price target on the shares, citing better-than-expected box-office sales.
RealD, based in Beverly Hills, California, rose 5.5 percent to $14.61 at the close in New York, the biggest increase since Dec. 04. The stock has gained 30 percent this year compared with an 12 percent rise in the Standard & Poor’s 500 Index.
James Marsh, an analyst at Piper Jaffray in New York, raised his price target on the shares to $17 from $15, citing box-office sales from theaters using RealD’s technology.
In a filing (RLD:US) late yesterday, RealD estimated March sales of $284 million from those cinemas. The company also estimated theaters produced sales of $268 million domestically and $346 million internationally in its quarter ended March 31. The report provides visibility into RealD’s earnings since the company collects revenue from theaters using its technology and sells the glasses fans wear in 3-D movies.
Marsh rates the shares overweight, the equivalent of a buy recommendation.
RealD is scheduled to report fourth-quarter financial results in late May. Analysts forecast (RLD:US) sales of $40.3 million and a loss of 26 cents a share, excluding items, according to the average of estimates compiled by Bloomberg.
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