STOCK NOW AMC Stock Could Stay Grounded, Says Barrington

AMC Stock Could Stay Grounded, Says Barrington


- Advertisment -

There was plenty to like in AMC Entertainment’s (NYSE:AMC) recent Q3 print. Fueled by the outsized success of Barbenheimer – for the uninitiated, Barbie and Oppenheimer – and aided by the company’s leading footprint of IMAX and Dolby Cinema locations, the theater chain surprised Wall Street both on the top-and bottom line.

Additionally, with total domestic box office revenues up 40.5% compared to the overall industry’s +37.7%, increase, AMC’s domestic results bettered the industry average.

Yet, that was not enough to stave off the bears, who subsequently sent shares down, not an uncommon sight in 2023; in total, AMC shares have shed an alarming 82% on a year-to-date basis.

The reason for the most recent leg down revolves around the company’s heavy debt load, which currently stands at around $5.1 billion. In response to this financial burden, AMC announced a $350 million share offering shortly after releasing its earnings report. This marks the second such offering in the past three months, following the sale of 40 million shares in September, which generated $325 million in proceeds for the theater operator.

According to Barrington analyst James Goss, “Significant uncertainty remains for AMC due to its high degree of financial leverage. Management has been successful in raising equity that has improved AMC’s potential to move past the pandemic, but risk levels remain high.”

Accordingly, Goss remains on the sidelines, recommending a Market Perform (i.e., Neutral) rating on AMC shares, with no fixed price target in mind. (To watch Goss’s track record, click here)

That’s Barrington’s view, but what does the rest of the Street make of AMC’s prospects? It offers a confusing take. On the one hand, based on 4 Holds and Sells, each, the analyst consensus rates the stock a Moderate Sell. However, some evidently think the shares are due a bounce, since the $9.75 average target makes room for 12-month returns of 31.5%. (See AMC stock forecast)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.


Please enter your comment!
Please enter your name here

Latest news

Global stocks record best month in three years on interest rate cut hopes

Stay informed with free updatesSimply sign up to the Capital markets myFT Digest -- delivered directly to...

Darby’s A Murder At The End Of The World Hacker Debate Trick Explained

Warning! This article contains spoilers for A Murder At The End Of The World.

Here are Thursday’s high school sports results for the Green Bay area

CHECK BACK FOR UPDATESGIRLS BASKETBALLGreen Bay Southwest 48, Ashwaubenon 31ASHWAUBENON – The Trojans held the Jaguars to seven second-half...

Regulator to revoke Hutecs Korea’s GMP certificate amid concerns of intentional violations < Bio < Article

The Ministry of Food and Drug Safety (MFDS) has expressed its position on revoking the Good Manufacturing Practices (GMP)...
- Advertisement -

With future of Gaza truce in doubt, more hostages and prisoners freed

Breadcrumb Trail LinksWorldNewsIsrael & Middle EastDuring the truce, at least 10 Israelis a day, along with other nationals, have...

JPMorgan, HSBC AM say Chinese stock investors should prepare for a long winter

Beaten-down Chinese stocks are likely to face a long winter ahead as the ongoing property turmoil poses...

Must read

- Advertisement -

You might also likeRELATED
Recommended to you