B. Riley upgrades AMC to Buy with $13 target after 'impressive' weekend - InvestingChannel

B. Riley upgrades AMC to Buy with $13 target after ‘impressive’ weekend

B. Riley Securities analyst Eric Wold upgraded AMC Entertainment (AMC) to Buy from Neutral with a price target of $13, up from $7, following the “impressive” opening weekend domestic box office performance for “Godzilla vs. Kong.” Given that the North American theater base is only ~60% open at this point with theater capacity restrictions averaging 25%-50% across the board, this weekend’s results are impressive considering the prior film, “Godzilla: King of the Monsters” opened to only $47.8M back in May 2019, Wold tells investors in a research note. The analyst believes consumers want to leave the house and return to the theater. Further, Wold has “remained impressed” with AMC management’s ability to weather the pandemic headwinds by both strengthening the balance sheet and negotiating with landlords to improve the cash runway into 2022. As the largest exhibitor in North America that also operates the highest number of premium Imax (IMAX) screens, AMC is well positioned to benefit from the industry’s “projected resurgence and return to pre-pandemic attendance levels by 2023,” says the analyst. With management increasingly signaling the ability and willingness to utilize equity to reduce the debt load, Wold says he can “now be more constructive on the upside opportunity for the shares.”

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