Benchmark Co. analyst Mike Hickey has maintained their neutral stance on AMC stock, giving a Hold rating on February 4.
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Mike Hickey has given his Hold rating due to a combination of factors, including AMC Entertainment’s strategic positioning for a multi-year recovery and the potential for growth driven by a robust film slate in upcoming years. The company’s investment in enhancing the theatrical experience and diversification of revenue streams, such as its home popcorn business, indicate positive long-term prospects.
However, AMC’s substantial long-term debt of approximately $4.5 billion and ongoing liquidity management efforts pose certain risks. Although the company has made progress in reducing its debt and extending maturities, these financial obligations continue to be a significant consideration. Additionally, while the domestic box office experienced resilience and is expected to grow, uncertainties remain due to past disruptions and evolving market conditions, justifying a cautious Hold rating for the stock.
In another report released on February 4, Roth MKM also upgraded the stock to a Hold with a $3.25 price target.