Breaking Stories

Research firm raises price target on AMC stock, but still thinks it’s dropping to $7.50

Adam Aron, AMC Entertainment president and CEO.

David Orrell | CNBC

Research firm Wedbush raised its 12-month price target on shares of AMC Entertainment on Friday…by $1.

As AMC shares nearly doubled this week to $51 riding a wave of enthusiasm from Reddit posters, Wedbush took its price target to $7.50 from $6.50. That would still entail an 85% plunge.

“AMC has made the best of its current ‘Meme Stock’ status by selling shares at a premium, and has raised significant capital doing so,” Wedbush analyst Alicia Reese said in a note.

“Should AMC use its current cash balance to meaningfully reduce its debt and create earnings growth opportunities, we could envision a justified price target as high as $10,” Reese said.

What's your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published. Required fields are marked *