Wedbush Upgrades AMC, Lifts Stock Of Movie Theater Chain

AMC shares jumped 9.5% in early trading after Wedbush Securities upgraded the stock to Outperform from Neutral, Grace O’Donnell reported for Yahoo Finance.

Earlier this month, AMC announced an agreement to raise $223.3 million in new financing and convert at least $143 million of debt into equity. I Photo: Paul Sableman Wikimedia Commons

Analyst Alicia Reese raised her price target on the stock to $4, citing the company’s improved financial position and the potential for more consistent film releases over the coming quarters.

She also noted that AMC had alleviated “near-term uncertainty” by restructuring debt that was previously due in 2026.

Earlier this month, AMC announced an agreement to raise $223.3 million in new financing and convert at least $143 million of debt into equity.

The industry as a whole has benefited from a stronger box office performance in Q2, and Reese said she expects that recovery to continue. However, she cautioned, “We do not see substantial growth in the movie theater industry over the next few years.”