Wedbush upgrades AMC Entertainment to Neutral on improving industry backdrop

Wedbush analyst Alicia Reese upgraded AMC Entertainment to Neutral from Underperform with a price target of $19, up from $2, following the 1-for-10 reverse stock split. The analyst thinks AMC is well positioned against an improving industry backdrop. The firm expects the 2023 North American box office to end up 20% over 2022, or 78% of 2019 box office, with AMC “at least” maintaining its 22% market share “if not expanding with its vast network of premium large format screens.” Moviegoers are increasingly opting for premium screens and a larger basket of high-margin concessions, the analyst tells investors in a research note.