B. Riley keeps Neutral rating on AMC into Delaware ruling

B. Riley analyst Eric Wold keeps a Neutral rating on AMC Entertainment with a $4.50 price target following the two-day settlement hearing with the Delaware Court of Chancery that concluded on Friday. The final ruling on the preferred to common share conversion is now in the hands of Vice Chancellor Morgan Zurn, who stated that in addition to not providing advanced notice of when she would provide a decision, the ruling would not be coming out until, at least, next week, the analyst tells investors in a research note. The firm remains optimistic for a ruling in favor of the proposed settlement after a special master issued a recommendation in favor of that settlement agreement. The agreement that was stuck between AMC and the lawsuit plaintiffs would provide for an additional AMC common share for each 7.5 common shares owned by a shareholder, notes Riley. It sees a more attractive upward trading opportunity for the APE units heading into the decision and immediately afterwards.