AMC Entertainment initiated with a Hold at Texas Capital

Texas Capital analyst Eric Wold initiated coverage of AMC Entertainment (AMC) with a Hold rating and $3 price target AMC is well positioned to benefit from improving theatrical attendance and box office revenues in 2025 and 2026, the analyst tells investors in a research note. However, given the company’s elevated debt balance and major maturities scheduled for the coming years, the firm projects that cash flow headwinds from the higher interest expense is likely to weigh on the stock’s equity valuation.