Benchmark Co. analyst Mike Hickey has maintained their neutral stance on AMC stock, giving a Hold rating on February 26.
Mike Hickey has given his Hold rating due to a combination of factors that include AMC Entertainment’s recent financial performance and strategic initiatives. The company exceeded expectations in Q4 2024, demonstrating strong consumer demand and operational efficiency, with significant growth in revenue and AEBITDA. Despite these positive results, the Hold rating reflects a cautious stance, considering the company’s ongoing efforts to strengthen its balance sheet and extend debt maturities, which have improved financial flexibility but still present challenges.
Furthermore, AMC’s forward guidance indicates optimism with expected box office growth and a robust film slate for 2025, alongside strategic investments in premium formats and high-performing locations. However, the Hold rating suggests that while these initiatives are promising, the overall market conditions and competitive landscape warrant a measured approach. The focus on enhancing customer engagement and expanding premium experiences is seen as a positive step, yet the uncertainties in the broader entertainment industry contribute to the Hold recommendation.
In another report released on February 26, Roth MKM also maintained a Hold rating on the stock with a $3.25 price target.