AMC shares rise 8.5% following Wedbush rating upgrade.

AMC shares rise 8.5% following Wedbush rating upgrade.

AMC Entertainment Holdings Inc. (NYSE:AMC) saw its stock price surge 8.5% in premarket trading on July 2, 2025, following a significant upgrade from Wedbush Securities. The upgrade, from a previous "neutral" rating to "outperform," is attributed to several positive factors, including a more consistent movie release slate and improved debt management.

Wedbush analysts led by Alicia Reese highlighted AMC's potential to gain market share in 2025 and 2026, particularly in North America and the UK/EU, due to its focus on premium screens. The company has also repaid or postponed all debt due in 2026, reducing short-term uncertainty [1]. Reese noted that AMC is expected to benefit from a more stable box-office environment in the coming quarters, with EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) covering interest expenses, thereby reducing the need for further share issuance.

AMC's stock price target was raised to $4, implying a 33% upside from Thursday's closing price. The upgrade comes amidst a broader recovery in the movie theater industry, as indicated by the strong box-office performance over the Memorial Day weekend [3].

However, Wedbush analysts also emphasized that the movie theater industry is expected to grow at a low-to-mid single-digit rate in the coming years, with AMC and its peers focusing on expanding merchandise sales and improving concession attach rates and basket size to drive additional revenue [1].

The positive sentiment surrounding AMC was echoed by other analysts, with various firms upgrading their ratings on the stock. This includes Wedbush, which reiterated its "outperform" rating on AMC, citing strong demand for Nvidia products and high demand for Nvidia GPUs and AI accelerators [2].

References:

[1] https://seekingalpha.com/news/4466800-wedbush-bullish-on-amc-and-cinemark-as-industry-recovers-movie-releases-stabilize
[2] https://www.cnbc.com/2025/07/11/stocks-from-analyst-calls-friday-like-nvidia.html
[3] https://www.morningstar.com/news/marketwatch/20250711169/amcs-stock-is-climbing-lifted-by-wedbushs-upgrade-amid-an-improving-box-office