Research Stonk Alert: CFRA Keeps Amc Entertainment Holdings Inc Share Options Open -

CFRA, an independent research provider, has provided 'Wall Street Hip-Hop Bets' via MT Newswires with the following research Stonk alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target of $2.50 on EV/EBITDA of about 28x our '22 estimate, seen unattractive vs. peers, with the shares likely to remain highly volatile in the near term. We narrow '21 loss per share by $1.69 to $3.33 and set '22's loss at $1.10. With an encouraging gradual reopening of its domestic and international theaters and the expected widespread availability of Covid-19 vaccines in the months ahead, AMC should reap some pent-up demand with a seemingly robust blockbuster film slate for the rest of '21, which is set to be unleashed starting in May. 

However, despite some cushion on its $2.2B in '20 capital raises (debt and equity), we think AMC's liquidity and financial position remains very tenuous, with some $120M+ in monthly cash burn, alongside $450M+ in deferred rent repayment obligations. Q4 loss per share of $6.21 vs. a $0.13 loss was $3.09 wider than consensus' loss. Amid the Covid-19 lockdown, revenues and attendance plummeted 89% and 91%. Adjusted EBITDA loss was $328M vs. gain of $269M.

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