AMC Entertainment Holdings Inc. shares AMC,
rose 3.8% in Tuesday’s premarket, to extend the 14.9% rise from the previous session, which was driven by the announcement by New York Governor Andrew Cuomo that New York cinemas can open with 25% capacity next week. Wedbush analyst Michael Pachter reiterated the neutral rating he has given AMC for the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We believe there is a significant pent-up desire to go to the cinema, and that could add significantly to AMC’s March / first and second quarter results, as AMC’s New York cinemas are some of the best performers on their home circuit “said Pachter wrote in a note to customers. He said the move from New York should attract other densely populated areas to reopen. “That said, we question whether the repressed desire will result in demand, as people may remain reluctant to go to the cinema until they receive the vaccine, or in the event that the transmission rate drops significantly,” wrote Pachter. AMC is projected to report fourth quarter results on or around March 4, but Pachter said the results will be a “non-event” as the focus will remain on liquidity. The stock has soared 209.0% in the year to date, while the S&P 500 SPX,
gained 3.2%.
