AMC extends rally with 13% jump following NYC reopening news
Feb. 23, 2021 12:55 PM ETAMC Entertainment Holdings, Inc. (AMC)IMAX, MCS, NCMI, CNK, RDI, CPXGF, AMC, CNNWQBy: Jason Aycock, SA News Editor12 Comments
- AMC Entertainment (AMC +13%) is riding high for a second day after news that New York City movie theaters would reopen March 5.
- The extended rally comes alongside a reaction from Wedbush, which calls the news a "ray of light" for the struggling theater company (which is still a ways off its apparently Reddit-fueled high from late January).
- “There is significant pent-up desire to go out to the movies, and this could potentially add meaningfully” to upcoming earnings, the firm says. It's keeping a Neutral rating and $2.50 price target, though - which currently implies about 66% downside from $7.40.
- Moreover, though, Wedbush has boosted its price target on cinema peer Cinemark (CNK -1.6%) - to $28 from $15, implying 23% upside. While that company has little NYC exposure, the news could push some more regional reopenings, and Wedbush says it should come out of recovery "relatively unscathed."
- In other cinema stocks today: Regal owner Cineworld (OTCPK:CNNWF) +3.6%; IMAX -0.2%; Marcus (NYSE:MCS) +1.5%; Reading International (NASDAQ:RDI) -2.1%; National CineMedia (NASDAQ:NCMI) +1.3%; Cineplex (OTCPK:CPXGF) -2.2%.