Movie theater operators hope the spread of vaccinations and looser restrictions on public gatherings will help their business snap back after a bleak 2020, but not all chains are alike.
The analyst initiated AMC stock at a Sell on Wednesday, setting a price target at
The company likely will discuss its expectations for the impact of mass vaccinations and the economy reopening when it reports earnings Wednesday evening after the bell. Last month, CEO
AMC shares, which have been caught up in the Robinhood retail trading frenzy, rose 13.2% on Wednesday in volatile trading. But they lost momentum and were up just 2.4% to
By Greenfield's calculations, at Tuesday's
He called the shares "dramatically overvalued."
Analysts tracked by FactSet expect AMC to report a fourth-quarter loss of
For the full year 2019, AMC reported a loss of
It isn't just a lingering unwillingness of some moviegoers to return to in-person theaters without knowing the vaccine status of those seated around them, he argued.
That means forecasting the box office sales for AMC's domestic and international screens is tricky. Greenfield estimates a high single-digit gain over 2019 for AMC's domestic sales in 2022 (he's ignoring 2020 and 2021 because of the pandemic). But he adds, "it honestly feels like it could be meaningfully worse."
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