AMC Entertainment Holdings (NYSE: AMC) shares rose 6% in the afternoon of Tuesday’s trading after Citi analyst Jason Bazinet raised his target price for the cinema chain to $ 3.70 per share while maintaining his sell rating on the stock would have.
Just as shopping malls are in harsh condition but still benefit enormously from so-called “revenge shopping” or when consumers run out just because they can now, theaters could boom just because movie lovers have been out of theaters for so long kept away. They will come out even though many studios are simultaneously releasing the films for streaming services.
While there are many structural issues that AMC is facing, it has raised enough money during the pandemic to keep the lights on for at least a year or more. Since moviegoers are getting a foretaste of going to the theater again, the naysayers of the entertainment stocks could turn out to be wrong – at least in the short term.