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Shares of AMC Entertainment (NYSE: AMC) have climbed more than 38% this week after the operator of the movie chain announced the release of several major titles that are expected to boost sales this year.
Fundamental analysis: huge loss announced; expected rebound
The coronavirus pandemic hit the film industry in 2020 and forced AMC and rivals to raise new funds to avoid bankruptcy. However, analysts expect AMC’s revenue to double in 2021.
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“For all the discussions about the steps we have taken at AMC to strengthen our position, the real salvation of our business will be through vaccination,” said Adam Aron, CEO of AMC.
The movie company said the implementation of coronavirus safety protocols in theaters encouraged more than 8 million moviegoers to return to theaters in the fourth quarter.
AMC said a number of delayed major movie releases will hit theaters starting in May, including “Godzilla vs Kong,” “Top Gun: Maverick,” “Black Widow” and “F9,” which are expected to increase significantly. the sales.
AMC has reopened the majority of theaters, with around 90% of its theaters in the United States being open on Friday. Theaters in Europe are expected to resume service in time for new film releases.
Still, analyst Richard Greenfield launched AMC stock coverage with a “Sell” rating and a price target of 1 cent.
“There is a substantial mismatch between the future of overall movie theater attendance and, therefore, AMC’s earning power relative to its current enterprise value and over-leveraged capital structure,” he said. ‘analyst.
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Technical Analysis: AMC Stock Worth $ 0.01, Analyst Says
The AMC stock price has more than doubled in the past 12 months, with the recent rally coming thanks to a group of Reddit investors who collaboratively raised a handful of stocks in January including AMC, GameStop, and more.
AMC’s stock price gained around 8.5% on Friday to bring the total weekly gains to over 38%. Price action has stopped near $ 12.00 where the 200-DMA is and this technical indicator will continue to offer resistance. On the downside, the horizontal line of $ 9.50 will offer support in the event of a pullback.
summary
AMC’s stock price jumped this week after the movie chain said the rollout of the coronavirus vaccine and the upcoming release of several new titles are expected to boost sales in 2021.
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