AMC Entertainment surge presents opportunity to raise funds, says Barrington

Barrington analyst James Goss notes that AMC Entertainment provided additional detail after releasing preliminary results in late April, calling Q1 a “difficult start” to the year and adding that Q2 has “gotten off to a slow start.” Significant uncertainty remains due to AMC’s high leverage and the current capital structure creates substantial uncertainty for equity values, says the firm, which views the recent surge in the stock as one that “presents an additional opportunity to raise equity funds that can support liquidity and debt reduction” in the hopes of “eventually moving AMC to a structure that could facilitate institutional support.” The firm keeps a Market Perform rating on AMC shares.