AMC shares may collapse to zero
2022.11.25 10:01
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AMC shares may collapse to zero
Budrigannews.com – In light of the updated estimates, the analysts maintained a Sell rating and decreased the price target to $1.10 per share. Based on the updated price target, they see an 90 percent chance that the Sell-rated AMC stock will fall.
In a client note, they stated, “We maintain our Sell rating, as we believe that the shares are overvalued at prevailing levels.”
Citi’s model has recently been updated by analysts to reflect Q3 performance and their most recent outlook for AMC stock.
AMC reported earlier this month that its revenue increased by 27% to nearly $1 billion, despite an increase in its net loss to $226.9 million. The company’s top and bottom line results were better than anticipated.
Additionally, the management stated that they anticipate a 15% to 25% growth in the U.S. box office in 2023 due to a continuing recovery.However, the analysts’ base-case scenario is less optimistic regarding the expansion of the U.S. box office.
“We see downside risk to the global box office going forward given the proliferation of multiple streaming services over the course of the last few years.Additionally, these recent industry developments suggest that exhibitors may be losing their strategic role, they wrote in a note.
AMC stock is up about 1% in pre-market Friday as of 09:25 ET (14:25 GMT).
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