Is the worst behind the AMC theaters and its besieged stock market course? A Wall Street analyst thinks.
Hollywood finally giving the mega-exhibitor the certainty in its supply of tents of tents necessary to bring back films of films in the habit of going to the multiplex, Wedbush Alicia Reese analyst improved on Friday AMC from AMC from neutral to outperformance and set a price target of $ 4.00, from $ 3.00.
Reese supported in an investor note on July 11, AMC “is about to benefit from a more coherent slate in the next quarters” and to gain market share until 2026 in North America and Europe. This good news for a company that tries to get out of a financial hole caused by Pandemic Parent Parent AMC Entertainment Holdings of 30 cents, or 10%, at $ 3.30 Friday morning.
Wedbush’s analysis is also more optimistic about AMC debt problems after the company has reimbursed or postponed all borrowing obligations which were to be due in 2026. “With the box office which should be more coherent in the next quarters, we expect the EBITDA of AMC covers interest expenses, which relieves its need to deliver more actions” Reese.
The AMC as the same in the past has been decidedly volatile while the exposure giant has burned in cash to maintain operations and increased fresh financing of new action sales. On July 1, AMC announced an agreement with the main creditors, debt holders and other lenders who offered more financial flexibility, resolved key disputes and allowed the company to focus on the box office.
Wedbush analyst clearly indicated that she did not see a clear navigation for AMC. “To be clear, we do not see substantial growth in 2025, 2026 or beyond. It is a low growth industry in a recovery period. In the coming years, we plan that growth rates to a figure in the middle figure with a figure with a figure with a figure with a figure at an average level, “said the note.
Wall Street’s analyst sees small mercies for exhibitors in major studios engaging in theatrical outings after the uncertainty caused by the theater closures of the pandemic era and a change of Hollywood titles to emerging streaming platforms.
The year of industry strikes in 2023 also disrupted the flow of Hollywood film releases with local multiplex. “We believe that the post-sag-aftra strike in 2023/2024, the studios have collectively created a 2025-2026, balanced to the gender, which, in our opinion, will lead to the public in theaters, regardless of economic agitation,” wrote Reese in its note.
Now, all that Hollywood has to do is deliver the winners of the box office – whether restarts of comics or art stars by Paul Thomas Anderson and Yorgos Lanthimos – who attract consumers more constantly in theaters, but many concerns about recession overlooks the broader economy.
“Theatrical activity has always been resilient in recessions, with the frequentation of the quality of the content and considered as a relatively inexpensive escape from reality. As such, at this stage, we are more concerned with the quality of the content than by the overall economic pressure on attendance,” said Wedbush’s note.
