AMC Entertainment Stock Surges After Analyst Upgrade to Buy

Wedbush analyst Michael Pachter upgraded AMC Entertainment's rating to Buy from Hold, raising the price target to $4 from $3. The upgrade reflects confidence in AMC's ability to stabilize its business and improve its financial position. Following the upgrade, AMC stock surged over 9% on Friday. Pachter believes AMC's consistent release slate and market share gains in 2025 and 2026 will drive growth. He also upgraded Cinemark's rating to Buy from Hold, citing steadier movie releases and plans to return cash to shareholders. Analysts have a Hold consensus rating on AMC stock with an average price target of $2.93.

July 02, 2025 — Wedbush analyst Michael Pachter has upgraded AMC Entertainment (AMC) and Cinemark (CNK) from Hold to Buy, reflecting a positive outlook on the theater chains' financial positions and growth prospects.

AMC Entertainment Upgrade

Pachter raised AMC's rating to Buy and increased the price target from $3 to $4 [1]. The upgrade was driven by several factors, including a more consistent film release schedule in the upcoming quarters, potential market share gains in 2025 and 2026, and AMC's leading premium screen presence in North America. Additionally, the analyst highlighted AMC's improved debt position, with the company having either repaid or deferred all debt due in 2026 and nearing the end of major share issuances. AMC plans to focus investments on its highest-performing locations, where revenue per screen has already surpassed 2019 levels by about 3%. Following the upgrade, AMC stock surged over 9% on Friday.

Cinemark Upgrade

Pachter also upgraded Cinemark from Hold to Buy, raising the price target from $32 to $37 [2]. The analyst cited steadier movie releases, a significant debt repayment next month, and strategic spending on laser projectors and new theaters as key reasons behind the move. Cinemark plans to return cash to shareholders through dividends and likely stock buybacks in 2025. The analyst believes Cinemark will maintain its market share by leveraging its 30 million loyalty members and improving theater quality.

Analyst Sentiment and Price Targets

Analysts have a Hold consensus rating on AMC stock, with an average price target of $2.93 [2]. Despite the recent upgrade, the consensus remains cautious, indicating potential downside risk of 10.26%.

Conclusion

The upgrades reflect rising confidence in AMC's and Cinemark's ability to stabilize their businesses and improve their financial positions. Investors should closely monitor the companies' progress in implementing their growth strategies and maintaining their financial health.

References

[1] https://ih.advfn.com/market-news/article/12546/amc-shares-jump-10-following-wedbush-upgrade-to-outperform
[2] https://www.tipranks.com/news/heres-why-penny-stock-amc-entertainment-is-booming-today