CFRA upgrades AMC, hikes PT to $18 from $2.50

Pharmadrug

26/05/2021 20:06

** CFRA upgrades AMC Entertainment Holdings Inc  AMC.N  to
'hold' rating from 'sell', increases 12-month price target to
$18 from $2.50, AMC last trades up 18.5% at $19.44
    ** CFRA analyst Tuna Amobi says keeping 2021, 2022 loss per
share estimates at $3.33 and $0.96
    ** Amobi cites recent rally on gradual reopenings of its
theaters, "indications of strong pent-up demand from movie goers
ahead of what seems like a very strong film slate for this
summer and through the holiday season." He also says AMC "bucked
the traditional selling pressure as its largest shareholder
(Dalian Wanda) mostly sold off its stake."  urn:newsml:reuters.com:*:nL2N2NB1TK
 urn:newsml:reuters.com:*:nL2N2N821W
    ** "Still, we are wary of a sizable equity dilution after
several capital raises (both equity and debt) through the
pandemic. Also, with Hollywood studios now looking to their own
streaming platforms, we think AMC faces a steep uphill climb on
the recovery path to a likely new normal that could compromise
the theatrical window," Amobi wrote
    ** Earlier Weds B.Riley Securities downgraded AMC rating to
"neutral" from "buy", citing valuation as the stock has
surpassed brokerage's recently-increased $16 PT  urn:newsml:reuters.com:*:nL3N2ND3PV

    

 ((sinead.carew@thomsonreuters.com; +1 (646) 223 6186; Reuters
Messaging: sinead.carew.thomsonreuters.com@reuters.net))