Analyst Actions: AMC Upgrades to Buy from Neutral - Socialnetworktrends

Analyst Actions: B. Riley Upgrades AMC Entertainment Holdings to Buy from Neutral on Potential Benefit from Industry's Projected Resurgence; Raises PT to $13 from $7 - Socialnetworktrends. 

AMC Entertainment Holdings (AMC) has an average rating of underperform and price targets ranging from $1 to $13, according to analysts polled by Capital IQ.

AT&T's (T) Warner Bros. unit delivered the best weekend for the US movie industry since the start of the COVID-19 pandemic, with its blockbuster "Godzilla vs. Kong" opening in more than 3,000 theaters and bringing in $48.5 million in its first five days.

The movie brought in the highest single-day earnings with $12.5 million on Saturday since the outbreak of the respiratory disease more than a year ago led to the widespread shutdown of cinemas. 

Over the three-day Easter holiday weekend, its tally went to $32.2 million, according to Box Office Mojo, which is part of's (AMZN) IMDb. The release topped previous pandemic-era opening weekend records, the company said.

"We believe consumers want to leave the house and return to the theater and these results are very telling especially considering that the movie was available for free to HBO Max subscribers at the same time as the theatrical release," said Eric Wold, an analyst with B. Riley Securities, in a note on Monday.

Sony's (SNE) Screen Gems released "The Unholy," a horror film that brought in $3.2 million while "Nobody," an action movie from Comcast's (CMCSA) Universal, had earnings of about $3.1 million, Box Office Mojo said.

In a separate statement, Imax (IMAX) said "Godzilla vs. Kong" earned $4.5 million on 284 screen, and more than 1,000 shows in the US were sold out over the five-day opening period. The film brought in $13 million in Imax viewings globally, the company said.

"This film has become a global event because it received a global theatrical release, and the phenomenal pipeline of tentpole films ahead have the chance to capitalize on the same opportunity," said Chief Executive Rich Gelfond.

B. Riley's Wold lifted his rating on AMC Entertainment (AMC) to by from neutral and raising the price target on the stock to $13 from $7. He said the movie theater operator's management has weathered the pandemic by strengthening its balance sheet and negotiating with landlords to "improve the cash runway" into next year.

"As the largest exhibitor in North America that also operates the highest number of premium Imax screens, we view AMC as well positioned to benefit from the industry's projected resurgence and return to pre-pandemic attendance levels by 2023," Wold said.

Price: 9.81, Change: +0.45, Percent Change: +4.81.