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AMC Stock Has a New Price Target at MKM Partners - $0.50

Stock Markets Sep 02, 2022 10:16AM ET
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© Reuters AMC Stock Has a New Price Target at MKM Partners - $0.50
 
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By Senad Karaahmetovic

An MKM Partners analyst cut the price target on AMC Entertainment (NYSE:AMC) stock to $0.50, from the prior $1.50, to reflect a lower Q3 box office outlook for the entire sector.

The Sell-rating is reiterated as the analyst sees over 90% downside risk compared to the current market price.

“We continue to rate AMC as a Sell, a view driven by what we perceive as an upside-down capital structure resulting from a substantially larger number of shares outstanding since the start of the pandemic,” the analyst wrote in a client note.

Moreover, the lower price target also reflects the recent stock dividend of one preferred APE share issued for each AMC share.

“As a result of a 400% increase in AMC’s shares outstanding (now in excess of 1bn) since the start of the pandemic along with its sizable $5.5bn debt load, it will likely take a number of years for the company to grow into its capital structure.”

The analyst also argued that the movie theater chain business “has hit a wall in August, and trends should remain lackluster until the back half of October.”

“We are lowering our box office industry forecasts (and company-specific projections) for 3Q and 4Q and we have questions about the growth trajectory for 2023,” he added.

AMC stock is down 1.8% today.

AMC Stock Has a New Price Target at MKM Partners - $0.50
 

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Comments (3)
Ioannis Dislias
IoannisDislias Sep 08, 2022 3:02AM ET
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Haha lol .. are theis guys have financial company and there are people that are paying them ?? Crazy world , next days amc to $10,20
Damir
Damir Sep 02, 2022 5:15PM ET
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Hahaha...Sure!
ROB Stone
ROB Stone Sep 02, 2022 10:25AM ET
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LOL
 
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