Shares of AMC Leisure (NYSE:AMC) popped 13% Monday, following bullish analyst commentary.
B. Riley Securities analyst Eric Wold lifted his ranking on the movie show firm’s inventory from impartial to purchase. He sees AMC’s share worth rising to $13, or roughly 23% increased than its closing worth of $10.61.
Wold’s improve got here after the sturdy opening weekend efficiency of Godzilla vs. Kong. The film racked up $48.5 million in home field workplace receipts, regardless of many theaters working at considerably lowered capability as a result of COVID-19 prevention measures. This in contrast favorably with the earlier Godzilla movie, King of the Monsters, which generated $47.8 million throughout its opening weekend in Could 2019.
“These outcomes are very telling, particularly contemplating that the film was obtainable free of charge to HBO Max subscribers similtaneously the theatrical launch,” Wold mentioned.
Godzilla vs. Kong‘s spectacular opening weekend suggests that individuals nonetheless take pleasure in going to the flicks, regardless of the coronavirus-related dangers. That bodes properly for AMC, which operates the biggest variety of theaters within the U.S.
It additionally comes at a vital time for the corporate. AMC wants to usher in sufficient money to service its $5.7 billion debt load, a good portion of which has rates of interest above 10%.
AMC is in search of to promote as many as 500 million new shares to scale back its burdensome debt and bolster its money reserves, following its close to descent out of business through the pandemic.
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