AMC Entertainment Holdings (AMC)
Citigroup Inc. analyst Jason Bazinet lowered his price target on AMC’s stock to $1.10 from $1.30 and maintained the Sell rating, implying downside from the current trading level of approximately $1.17. The reduced target reflects concerns surrounding elevated leverage, ongoing dilution risk, and structurally pressured theatrical attendance trends. While box office recovery has improved versus pandemic lows, overall ticket volumes remain below pre-2019 levels, limiting operating leverage and constraining free cash flow generation. From a credit perspective, AMC’s capital structure continues to carry significant refinancing risk over the medium term, particularly in a higher-for-longer rate environment, which weighs on equity valuation.
Roth MKM analyst Eric Handler lowered his target to $1.50 from $2.00 while maintaining a Neutral rating. Although the target reduction signals tempered expectations for near-term recovery, the Neutral stance suggests the stock may be approaching fair value relative to projected EBITDA stabilization. Handler’s outlook likely incorporates a gradual normalization in theatrical release schedules and concession revenue per patron, but with limited confidence in sustained margin expansion given fixed cost intensity and competitive streaming alternatives.
From a fundamental standpoint, AMC remains highly sensitive to box office slate strength, consumer discretionary spending trends, and capital markets access. The company’s liquidity position has been supported by equity issuance and liability management initiatives; however, these actions have been dilutive to shareholders and underscore the fragility of the capital structure.
The analyst valuation reductions reflect continued skepticism regarding AMC’s ability to materially deleverage and generate sustainable positive free cash flow in the near term. While operational metrics may show incremental stabilization, valuation remains heavily dependent on external financing conditions and the durability of theatrical demand recovery.
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