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Pro Analysis

Buy Regal on dividend, box-office rebound: RBC

General view at the premiere of "All or Nothing" at Regal Cinemas L.A. Live on June 9, 2016 in Los Angeles.
Noel Vasquez | Getty Images
General view at the premiere of "All or Nothing" at Regal Cinemas L.A. Live on June 9, 2016 in Los Angeles.

Investors should load up on shares of Regal Entertainment Group because management may be ready to deploy excess capital in the form of a dividend and box-office receipts should rebound in 2017, RBC Capital Markets predicts.

In a note to clients Wednesday, the investment bank upgraded Regal to "outperform" from "neutral" with a 12-month price target of $23, representing a 17 percent gain from Tuesday's close.