AMC price target raised by Roth MKM as box-office results improve

Roth MKM has raised AMC Entertainment Holdings Inc.’s price target and estimates as box-office results continue to improve. The analyst firm noted that higher-than-projected box-office results have prompted them to raise their third-quarter revenue estimate for AMC and the adjusted EBITBA estimate. Specifically, AMC’s domestic box-office market share is expected to improve due to the success of the movie “Oppenheimer.” In addition, Roth MKM increased AMC’s price target and mentioned that the company enjoyed its busiest weekend since 2019, fueled by the summer releases of “Barbie” and “Oppenheimer.” However, the report also highlighted cash burn as a concern for AMC.

AMC price target raised by Roth MKM as box-office results improve

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AMC to Benefit from Better-Than-Expected Box Office Results

AMC Entertainment Holdings Inc. is expected to see positive results from the box office, according to Roth MKM. This is due to higher-than-projected box office results, which have prompted Roth MKM to raise its third-quarter revenue estimate for AMC. The increase in revenue is a result of successful summer blockbusters, such as “Oppenheimer.” The improved box office results are expected to boost AMC’s domestic market share as well.

AMC’s Third-Quarter Revenue Estimate Raised by Roth MKM

Roth MKM has raised its third-quarter revenue estimate for AMC Entertainment Holdings Inc. The estimate has been increased to $1.304 billion, up from $1.209 billion. This represents a year-over-year increase of 35% and is only a 1% decrease from the third quarter of 2019, before the impact of the COVID-19 pandemic. The higher-than-expected box office results have contributed to this increase in revenue.

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AMC’s Adjusted EBITBA Estimate Increased by Roth MKM

In addition to raising its third-quarter revenue estimate, Roth MKM has also increased its adjusted EBITBA estimate for AMC. The estimate has been raised to $161 million, up from $116 million. The improved box office results, particularly the success of “Oppenheimer,” have contributed to this increase in AMC’s adjusted EBITBA estimate.

AMC’s Domestic Box-Office Market Share Expected to Improve

Roth MKM predicts that AMC Entertainment Holdings Inc.’s domestic box-office market share will improve as a result of the successful summer blockbusters. The strong performance of films such as “Oppenheimer” has boosted AMC’s market share, especially when combined with the success of Imax Corp. The improved market share is a positive indication for AMC’s future performance.

AMC’s Price Target Raised by Roth MKM

As a result of the improved box-office results and the positive outlook for AMC, Roth MKM has raised its price target for the company. The price target has been increased to $5, up from 50 cents. This reflects Roth MKM’s confidence in AMC’s future performance and its expectation that the company will continue to benefit from the success of blockbuster films.

AMC’s Stock Performance

Following Roth MKM’s announcement of an increased price target for AMC, the company’s stock experienced a decline of 7.1% during the trading session. This decline outpaced the overall market decline, with the S&P 500 index falling 1.3%. Despite this short-term decline, the long-term outlook for AMC remains positive.

Success of Summer Blockbusters Boosts AMC’s Revenue

AMC Entertainment Holdings Inc. has experienced a boost in revenue as a result of the success of summer blockbusters. Films such as “Oppenheimer” and “Barbie” have contributed to an increase in admissions revenue, with AMC reporting its “best week ever” for admissions revenue. This success is further evidenced by numerous AMC locations setting single-week box-office records, including locations in the greater Los Angeles market.

AMC’s Record-Breaking Week for Admissions Revenue

During the summer, AMC enjoyed a record-breaking week for admissions revenue. This was primarily driven by the success of films such as “Barbie” and “Oppenheimer.” The strong performance of these films contributed to increased revenue for AMC and demonstrated the ongoing demand for movie theater experiences.

AMC’s Distribution Business Not Seen as Transformative

AMC’s decision to enter the distribution business, as exemplified by its involvement with films such as “Taylor Swift: The Eras Tour” and “Renaissance: A Film by Beyonce,” has received attention. However, Roth MKM does not view AMC’s distribution business as transformative. The distribution business is considered to have lower returns and margins compared to other aspects of AMC’s operations. Despite this, the distribution partnerships with popular artists can still contribute to AMC’s overall revenue.

Cash Burn Remains an Issue for AMC

While AMC has experienced positive results in terms of revenue and market share, cash burn remains a concern for the company. Roth MKM highlights the need for AMC to issue additional shares in order to maintain a comfortable liquidity level. This indicates that AMC continues to face financial challenges and must take steps to manage its cash flow effectively.

In conclusion, AMC Entertainment Holdings Inc. is poised to benefit from better-than-expected box office results. Roth MKM has raised its revenue and adjusted EBITBA estimates for the company, reflecting confidence in its future performance. The success of summer blockbusters has boosted AMC’s revenue and market share, demonstrating the continued demand for movie theater experiences. However, AMC still faces challenges such as cash burn and the need to manage its liquidity effectively. Overall, the outlook for AMC remains positive, and the company is well-positioned to capitalize on future box office successes.

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