BUZZ-Cineworld: rallies on Nomura upgrade

** Cinema operator Cineworld up 2 pct after Nomura upgrades to "buy" v "hold" following recent share price weakness

** Nomura calls valuation attractive on 15.8x P/E 2016E, 3.5% dividend yield, keeps 588p TPP (shares now trade 491p)

** Flags CINE underperformed the FTSE All-share index by 9% over past three months amid high 4Q expectations (Star Wars and Bond) coupled with the lack of upgrade from its trading update (Jan 12)

** Broker forecasts group EBITDA increasing from GBP 152m in 2015 to GBP 192m by 2018; Of this GBP 40m increase, estimates the current estate will only contribute an additional GBP 8m (c2% p.a.) with the balance (80%) driven by new cinema openings

** Says pipeline 73% weighted to less mature central and eastern European division, where cash returns (EBITDA/cash capex) can be as little as two years away

** CINE prelims March 10

** Co top of FTSE 350 Travel and Leisure Index (venkateshasoumithri.mamidipudi.thomsonreuters.com@reuters.net)