The scores recreation: AMC Leisure shares rise after Wedbush's worth goal doubled

AMC Entertainment Holdings Inc. stocks rose Monday as Meme stock continued to rebound from last month's slump after Wedbush analyst Michael Pachter doubled his price target ahead of the company's earnings report and increased optimism about that Environment after the pandemic.

Pachter raised his target for the stock from $ 2.50 to $ 5.00, but that target was 38% below Friday's closing price of $ 8.05. However, he reiterated the neutral rating he had for AMC since March 2020 and said it was "difficult to get positive here despite increasing optimism in the industry".

The existence of the cinema chain
+ 0.25%
increased in premarket trade by 4.8%. The stock gained 0.5% last week, posting a third straight weekly gain. During this streak, which followed a two-week 57.8% dive, it increased 44.0%.

The stock was up 525.5% in January, including a 301.2% jump to a more than two-year closing high of $ 19.90 on Jan. 27, as part of the trading frenzy that hit the WallStreetBets forum of Reddit, which was targeting sharply shortened stocks.

also read: Reddit CEO: WallStreetBets has uncovered a gap between financial insiders and outsiders.

Wedbush's tenant said he thought AMC had taken the right precautions to reopen, such as installing quality air filtration systems, implementing improved cleaning protocols, and reducing seating to allow for social distancing. He said this has allowed the company to grow visitor numbers in recent months, despite the fact that many of its stores have closed due to the COVID-19 pandemic.

Additionally, Pachter said AMC has been able to raise enough liquidity through debt and stock offerings to survive without a huge cash boost through midsummer.

"We believe, however, that it may be years before AMC can rethink its previous growth strategy as it repays its growing mountain of debt," Pachter wrote in a statement to customers.

AMC is expected to release fourth quarter results after the closing bell on Wednesday. Analysts surveyed by FactSet estimate the company will post loss per share of $ 3.36 on earnings per share for the same period last year, while revenue is projected to grow 90% to $ 142.3 million will sink.

Although the FactSet consensus for losses per share has narrowed from $ 3.70 at the end of February, its revenue forecast has decreased from $ 155.1 million.

Of the 8 analysts surveyed by FactSet, half correspond to neutral ratings, while the other half correspond to sales ratings. The average target price is USD 2.51.

AMC shares are up 279.7% year-to-date and are up 77.7% over the past 12 months. In comparison, the S&P 500 Index
+ 1.95%
reached 2.3% this year and 29.3% last year.

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