AMC Jumps 11% after First Analyst Buy in 4 Years – Is Analyst Sentiment Turning?

Business Insider

11 hours ago

Shares of AMC Entertainment (AMC) surged 11% on Thursday after Wedbush five-star analyst Alicia Reese upgraded the stock to Outperform and raised her price target to $4. It's the first Buy rating the company has received from a major Wall Street analyst in over four years.
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The upgrade comes as AMC shows signs of progress in key areas. Reese pointed to a stronger film slate ahead, market share gains driven by premium screens, and a cleaner balance sheet following recent debt restructuring. Investors responded quickly to the bullish note, pushing the stock to $3.33 at the close and $3.34 in after-hours trading.
What Changed?
Wedbush cited several tailwinds supporting the upgrade. First, AMC recently completed a major debt restructuring that pushes most maturities to 2029 and beyond. The move reduced near-term uncertainty and included $143 million of debt converted into equity.
Second, AMC continues to leverage its premium screen leadership, owning the largest footprint of IMAX (IMAX) and Dolby (DLB) theaters in North America, to attract moviegoers despite the rise of streaming. Reese also sees growth potential from planned expansions in the UK and EU.
Lastly, the analyst noted that AMC is approaching the end of its share issuance cycle. With EBITDA now expected to cover interest expenses, the need for further equity raises could be off the table.
What This Means for Investors
In the near term, the stock may see continued volatility as investors weigh short squeezes, sentiment swings, and upcoming earnings. But in the medium term, the narrative appears to be shifting. The focus is moving from meme-driven spikes to actual balance sheet improvements and steady box office trends.
Is AMC Stock a Buy?
The average 12-month price target on AMC currently stands at $3.10, implying a 6.91% downside. Price targets range from a low of $2.60 to a high of $4. Despite Wedbush's renewed belief in AMC, only 1 out of 8 analysts now rates the stock a Buy, while 6 remain at Hold and 1 at Sell. TipRanks AI rates the stock as Hold with a $3.50 target, reflecting a more cautious 5.1% upside.