Analysts rate AMC Entertainment Holdings Inc. (AMC:NYE) with a Underperform rating and a $6.93 target

STA Research
by: STA Research
AMC Entertainment Holdings Inc.

Based on the AMC Entertainment stock forecast from 6 analysts, the average analyst AMC stock price target is USD 6.93 over the next 12 months. AMC Entertainment Holdings Inc’s average analyst rating is Underperform. Stock Target Advisor’s own stock analysis of AMC stock forecast is Slightly Bearish, which is based on 4 positive signals and 6 negative signals. At the last closing, AMC Entertainment stock price was USD 8.88AMC Entertainment stock price has changed by -0.29% over the past week, -7.98% over the past month and -79.83% over the last year.

About AMC Entertainment Holdings Inc. (AMC:NYE):

AMC Entertainment Holdings, Inc., through its subsidiaries, engages in the theatrical exhibition business. The company owns, operates, or has interests in theatres in the United States and Europe. As of March 1, 2022, it operated approximately 950 theatres and 10,600 screens. The company was founded in 1920 and is headquartered in Leawood, Kansas.

 

What we like:

Superior risk adjusted returns:

AMC Entertainment stock has performed well, on a risk adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Superior total returns:

AMC Entertainment stock has outperformed its sector peers on average annual total returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile.

High dividend returns:

AMC Entertainment stock has outperformed its sector peers on average annual dividend returns basis in the past 5 years (for a hold period of at least 12 months) and is in the top quartile. This can be a good buy, especially if it is outperforming on total return basis, for investors seeking high income yields.

Underpriced compared to book value:

AMC stock price is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

 

What we don’t like:

High volatility:

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to earnings:

AMC stock price is trading high compared to its peers on a price to earning basis and is above the sector median.

Negative cashflow:

The company had negative total cash flow in the most recent four quarters.

Negative free cash flow:

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth:

AMC stock forecast has shown below median earnings growth in the previous 5 years compared to its sector

Low Revenue Growth:

AMC stock forecast has shown below median revenue growth in the previous 5 years compared to its sector

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