AMC To The Moon: Theater Stonks All Modestly Higher - www.malkamdior.com
Sell-rated Citigroup also upped their tgt on AMC to $3.70 from $2; analyst Jason Bazinet said, "We rate AMC shares a Sell. With the rapid spread of COVID-19 globally, movie theaters have been forced to shut down in many countries.
In March 2020, AMC announced that it was shutting down its theaters, while reopening some international theaters in June/July 2020 and some US theaters in August 2020. AMC was able to address near-term liquidity concerns through debt raises and a debt exchange.
(AMC) has an average rating of underperform and price targets ranging from
$1 to $16, according to analysts polled by Capital IQ.
However, i see the company's elevated leverage as an added risk to an uncertain recovery. And, we see recent industry developments indicating that the strategic role of exhibitors is diminishing.