UPDATE: AMC Entertainment (AMC) PT Lowered to $0.50 at MKM Partners, 'we remain concerned about the below-average volume of mid-level movies'
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MKM Partners analyst Eric Handler lowered the price target on AMC Entertainment (NYSE: AMC) to $0.50 (from $1.00) while maintaining a Sell rating.
The analyst comments "IMAX remains our top idea among exhibition-industry-related companies as a result of its blockbuster focus, its expanding market share, a global footprint, and its asset-light business model. In addition, with China's cinema market having largely reopened, business trends are steadily improving. Cinemark, in our view, is the best-in-class operator among traditional theatre owners and management is doing a good job with what it can control. However, we remain concerned about the below-average volume of mid-level movies as well as inflationary pressures, which could hinder the company's ability to consistently return to its prior 20%+ adjusted EBITDA margin level. We continue to rate AMC as a Sell, a view driven by what we perceive as an upside-down capital structure resulting from a substantially larger number of shares outstanding since the start of the pandemic."
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