Key Points
Wedbush boosted its rating on AMC Entertainment stock from neutral to outperform and raised its price target.
The firm’s analyst was impressed with AMC’s recent moves to improve cash flow and reduce debt.
Despite improved analyst sentiment, the company’s negative equity, years of unprofitability, and weak theater attendance make its stock a risky pick.
10 stocks we like better than AMC Entertainment ›
Shares of AMC Entertainment (NYSE: AMC) are jumping on Friday, up 10.6% to $3.32 as of 2:05 p.m. ET. At that point in the session, the S&P 500 was off by about 0.2% and the Nasdaq Composite was flat.
A ratings upgrade from Wedbush analyst Michael Pachter appeared to be the driving force behind the movie theater chain’s stock move.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Wedbush sees a significant upside
On Friday morning, Wedbush’s Pachter upgraded AMC shares from neutral to outperform and raised his 12-month price target on the stock from $3 to $4. The analyst cited an upcoming film release schedule that’s more consistent than what we’ve seen recently. He also pointed to AMC’s lead in premium screens in North America as an advantage that could help it capture more market share, as well as the company’s expansion plans in the U.K. and the European Union.
Pachter was also impressed with AMC’s cost-cutting efforts, which have included closing underperforming theaters., That boosted its bottom line, allowing it to reduce its debt and eliminating its need to issue additional shares in the near future.
Image Source: Getty Images
AMC has its work cut out for it
AMC stock has a lot of loyal fans who, despite the company’s troubles, see a bright future for it. Their support has turned it into a meme stock. But I’m not convinced by their bullish views. The company’s balance sheet is in rough shape with negative equity approaching $2 billion, and it has been years since it has operated in the black. I’m a movie lover, and I wish I could say differently, but consumer trends are not working in AMC’s favor. In 2024, roughly 760 million movie tickets were sold in the U.S., down from 1.2 billion the year before the pandemic hit. That in turn was down from the late 1990s through the early 2000s, when 1.4 billion or more tickets were sold during most years.
Should you invest $1,000 in AMC Entertainment right now?
Before you buy stock in AMC Entertainment, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AMC Entertainment wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $674,432!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,005,854!*
Now, it’s worth noting Stock Advisor’s total average return is 1,049% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 7, 2025
Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
