Barrington analyst James Goss has reiterated their neutral stance on AMC stock, giving a Hold rating on April 18.
James Goss has given his Hold rating due to a combination of factors that influence the current performance and future prospects of AMC Entertainment. The first quarter of 2024 presented a challenging comparison for the box office, with production delays and a weaker holiday period in late 2023 impacting results. Despite these shortfalls, some films like “Dune: Part Two” and “Kung Fu Panda 4” performed well. While the year-over-year box office was down by 6%, there is potential for improvement in the latter half of the year, which could be buoyed by better comparisons to previous strike-affected release slates. Additionally, the use of IMAX technologies and extended screening times for certain movies provided a solid contribution to the Premium Large Format (PLF) segment in the latter part of the quarter.
Looking forward, there is optimism for 2025 with exhibitors anticipating a wider release slate compared to 2023, which could bolster the industry’s box office and financial outcomes. However, the pace at which production can ramp up remains an area of uncertainty. The stable to upward trend of equity values in the sector, despite a box office still below pre-pandemic levels, suggests that cost control measures and a strong commitment to theatrical releases by studios could support profitability. The industry also finds encouragement in streaming companies allocating budget for theatrical releases, signaling a diverse genre offering for cinema-goers. All these elements contribute to the rationale behind the Hold rating, indicating cautious optimism tempered by prevailing uncertainties.
Goss covers the Communication Services sector, focusing on stocks such as AMC Entertainment, Townsquare Media, and Lions Gate Entertainment Class A. According to TipRanks, Goss has an average return of -7.4% and a 36.91% success rate on recommended stocks.
In another report released on April 18, Wedbush also maintained a Hold rating on the stock with a $4.00 price target.
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AMC Entertainment (AMC) Company Description:
AMC Entertainment Holdings, Inc. engages in the theatrical exhibition business through its subsidiaries. It operates through the United States Markets and International Markets segments. The United States segment involves in the activity in the U.S. specifically in New York, Los Angeles, Chicago, Atlanta, and Washington, D.C..The International Markets segment focuses its operations in the United Kingdom, Germany, Spain, Italy, Ireland, Portugal, Sweden, Finland, Estonia, Latvia, Lithuania, Norway, and Denmark. The company was founded on June 6, 2007 and is headquartered in Leawood, KS.
