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AMC Entertainment Holdings Inc. AMC Shares,
rose 3.8% in pre-market trading on Tuesday, extending the 14.9% rise from the previous session, which was fueled by New York Gov. Andrew Cuomo’s announcement that theaters New York theaters may open at 25% capacity next week. Wedbush analyst Michael Pachter reiterated the neutral rating he had on AMC over the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We believe there is a significant pent-up desire to go to the movies, and this could potentially add significantly to AMC’s March / Q1 and Q2 results given that AMC Theaters in New York are among its theaters. top performers in its national circuit, ”Pachter said in a note to customers. He said the New York decision should prompt other densely populated areas to reopen. “Having said that, we wonder if pent-up desire will translate into demand as people may remain reluctant to attend the movies until they receive their vaccine, or in the event the rate of transmission drops significantly. “, Pachter wrote. AMC is expected to release its fourth quarter results around March 4, but Pachter said the results would be a “non-event” as the focus will remain on liquidity. The stock is up 209.0% year-to-date, while the S&P 500 SPX,
gained 3.2%.
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