AMC Entertainment shares extend rally after analyst calls New York reopening a ‘ray of light


AMC Entertainment Holdings Inc.AMC shares,
+ 2.59%
rebounded 3.8% in premarket trading on Tuesday, to extend the 14.9% increase from the previous session, which was driven by New York Governor Andrew Cuomo’s announcement that New York City theaters they can open at 25% capacity next week. Wedbush analyst Michael Pachter reiterated its neutral rating on AMC for the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We believe there is a strong pent-up desire to go to the movies, and this could contribute significantly to AMC’s March / Q1 and Q2 results, given that AMC’s New York theaters are some of the highest performing on its circuit national “, Pachter. wrote in a note to clients. He said New York’s move should attract other densely populated areas to reopen. “With that said, we wonder if the suppressed desire will result in demand, as people may remain reluctant to attend the movies until they receive their vaccine, or in the event that the transmission rate drops significantly,” Pachter wrote. AMC is projected to report fourth quarter results on or around March 4, but Pachter said the results will be a “no event” as the focus will remain on liquidity. The shares have soared 209.0% so far this year, while the S&P 500 SPX,
-1.32%
it has gained 3.2%.

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