Marcus (MCS) is expected to continue benefiting from a slate of theatrical releases that are more consistent and aimed at families over the next several quarters, Wedbush Securities said in a note Friday.

Even after shutting down a number of underperforming or high-cost theaters, the company's theater segment is "meaningfully" more profitable, Wedbush analysts said.

Management has finished allotting surplus capital expenditure to major hotel projects and is now likely to execute one or more of the following initiatives: boost its dividend to pre-pandemic levels, buy back shares, and pursue acquisitions that will be accretive to its hotel and theater segments, according to the note.

With these potential initiatives, along with the expected normalized annual growth rate and solid box office growth over the following quarters, the company's stock should trade at a premium valuation, the investment firm said.

Wedbush Securities reiterated its outperform rating on the stock, and raised the price target to $34 from $23.

Shares of the company were down more than 5% in early Friday trading.