B.Riley FBR Sticks to Its Buy Rating for AMC Entertainment (AMC)

By Austin Angelo

B.Riley FBR analyst Eric Wold reiterated a Buy rating on AMC Entertainment (AMCResearch Report) today and set a price target of $20. The company’s shares closed yesterday at $13.63.

Wold said:

“Before the open on Thursday (5/9), AMC Entertainment Holdings (AMC) reported 1Q19 results that were in line with expectations for revenues, but fell well short on adjusted EBITDA as models were not adjusted ahead of time for ASC 842 and did not account for enough fixed cost deleveraging on the known weak industry box office in the period. Nevertheless, focusing below the surface, we came away increasingly positive around AMC’s ability to outperform the industry heading into the remainder of this year’s film slate (as box office trends strengthen from here) and for Stubs A-List to increasingly become a positive contributor to EBITDA and drive incremental recurring revenue to the domestic circuit. We recommend taking advantage of the decline in AMC shares on Thursday around the ASC 842 confusion and are reiterating our Buy rating and unchanged $20 PT.”

According to TipRanks.com, Wold is ranked 0 out of 5 stars with an average return of -3.7% and a 39.1% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for AMC Entertainment with a $20.20 average price target, a 48.2% upside from current levels. In a report issued on April 29, Wedbush also upgraded the stock to Buy with a $20 price target.

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AMC Entertainment’s market cap is currently $1.41B and has a P/E ratio of 18.07. The company has a Price to Book ratio of 1.

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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 company was founded on June 6, 2007 and is headquartered in Leawood, KS.