Analyst Downgrades AMC on Lost Q2 Box Office Revenue From COVID-19 Closures
Wedbush downgraded its target for AMC Entertainment to “neutral” to account for COVID-19-related global theater closings in effect second half of March through the end of May. If closures last longer, AMC “would need additional relief" from government assistance, rent…
Sign up for a free preview to unlock the rest of this article
Export Compliance Daily combines U.S. export control news, foreign border import regulation and policy developments into a single daily information service that reliably informs its trade professional readers about important current issues affecting their operations.
waivers or new sources of cash to avert "a potential breach of debt covenants." wrote analyst Michael Pachter Friday. If pent-up demand resumes once theaters re-open -- assuming improved margins and operating expense control -- shares could “materially appreciate,” Pachter said. Wedbush projects Q1 revenue at $953 million, down from its previous $1.2 billion estimate. Its Q2 revenue outlook is now $600 million, versus $1.4 billion. Pachter maintained an “outperform” rating on Cinemark, “a well-managed company with relatively stable results despite industry fluctuations,” but lowered the price target to $20 from $39. The analyst reduced first half estimates on theater closures mid-March through May, now expecting Q1 revenue of $575 million, down from previous estimates of $727 million, and Q2 revenue of $388 million from a prior $911 million. AMC’s stock closed 5.6% lower Friday at $3.19. Cinemark shares finished 0.2% higher at $11.42.