B. Riley Upgrades AMC Entertainment (AMC) to Buy

B. Riley upgraded AMC Entertainment (NYSE: AMC) from Neutral to Buy with a price target of $35.00 (from $33.25) on expecxted IMAX-driven box office outperformance, stronger cash flow and a more attractive entry point.

Analyst Eric Wold commented, "We are upgrading AMC from Neutral to Buy on more optimistic projections that recently impressive IMAX box office results on the circuit’s leading domestic share of commercial IMAX screens (IMAX; Buy; $50.00 PT), coupled with continued theater enhancements, will help to drive industry box office outperformance in Q2/2015 as well as help to offset the risk of a 2016 box office decline. Furthermore, we view the 18% decline in AMC shares since our 4/13 downgrade as more than baking in any potential risks around previously-aggressive 2016 consensus estimates (they have since been pulled in), film slate margin pressures or the relatively unconcerning DOJ investigation over “clearances”. We are raising our PT from $33.25 to $35.00 – which drives a potential return of 28% from current levels including the current dividend."

For an analyst ratings summary and ratings history on AMC Entertainment click here. For more ratings news on AMC Entertainment click here.

Shares of AMC Entertainment closed at $28.01 yesterday.

You May Also Be Interested In

• Cleveland Research Upgrades Dynatrace Inc. (DT) to Buy, 'optimism underlying fundamentals are likely to support upside'
• Fujifilm Holdings Corp. (4901:JP) (FUJIY) PT Raised to JPY4,100 at CLSA
• Rio Tinto Ltd. (RIO:AU) (RTNTF) PT Raised to AUD137 at CLSA