Citi Claims AMC Entertainment Is Worth Less Than $5Citi reiterated its 'sell' rating on AMC stock
Citigroup recently dropped its price target on AMC Entertainment from $15.50 to $4.75 per share, reiterating a “sell” rating for shares. AMC stock fell almost 3% on the news yesterday.
Shares opened today, Sept. 27, at $7.95 per share and a market capitalization of about $1.25 billion. The price of AMC stock has been slashed more than 50% since AMC absorbed its APE preferred shares as common stock and executed a 1-for-10 reverse stock split a month ago.
The bad news on the analyst front was offset against the end of the writers’ strike. However, Hollywood still hasn’t settled the current strike by actors.
Saving AMC Entertainment, the largest U.S. theater chain, may be more important to Hollywood than ending the strike. Without theaters, movies have no distribution other than streamers, which pay a relative pittance.
Since the pandemic, AMC CEO Adam Aron has been in extreme survival mode, selling stock and debt to keep the chain alive while waiting for product. This has included rooting for small traders squeezing institutional short sellers. It has also meant selling more shares and resulted in the creation of the APE preferred shares. $AMC Entertainment(AMC.US$
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