On Thursday, B.Riley adjusted its stance on AMC Entertainment (NYSE:AMC), lowering the price target to $8 from the previous $12 while maintaining a Neutral rating on the stock. The firm's analyst cited the fourth quarter of 2023 results, which surpassed expectations due to an increase in attendance and spending, attributed to two concert films distributed by AMC in that quarter.
The analyst recognized that the film slate disruptions caused by industry strikes might pose challenges for AMC in 2024. However, they expressed confidence in a significant box office recovery by 2025 and AMC's potential to outperform in both attracting audiences and increasing per-customer revenue.
Despite the optimistic outlook for 2025, the analyst revised their estimates downward and reduced the price target. This decision reflects concerns over how AMC will handle its looming debt maturities later in the year, which has been a factor in the recent downward pressure on the company's stock.
AMC's fourth-quarter performance, boosted by the two concert films, indicates a positive trend in customer engagement for the company. The analyst's comments suggest that while short-term challenges are anticipated, there is an expectation for AMC to navigate these successfully and capitalize on future growth opportunities.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.