Barrington analyst Patrick Sholl has maintained their neutral stance on AMC stock, giving a Hold rating today.
Patrick Sholl has given his Hold rating due to a combination of factors surrounding AMC Entertainment’s current financial and operational status. The company has shown improvement in its revenue streams, with a notable increase in total revenues and EBITDA, largely due to strategic pricing and merchandise sales. However, despite these positive developments, AMC’s high leverage remains a significant concern, as it poses substantial uncertainty for equity values, especially with its term loan due in 2026.
Additionally, while AMC has made strides in reducing its debt and expanding its revenue opportunities, the overall market performance and the company’s capital structure create a speculative risk profile. The recent stock surge offers a potential avenue for raising equity funds, which could aid in liquidity and debt reduction. Nonetheless, the uncertainty surrounding the box office recovery and the company’s ability to achieve positive free cash flow in the future contribute to the Hold rating, as these factors suggest a cautious approach is warranted for investors at this time.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $3.25 price target.