AMC Entertainment Receives a Buy from B.Riley FBR

B.Riley FBR analyst Eric Wold reiterated a Buy rating on AMC Entertainment (NYSE: AMC) today and set a price target of $29. The company’s shares closed yesterday at $16.

Wold observed:

“the close, AMC Entertainment Holdings (AMC) announced that it sold the remainder of its entire common unit stake in to both in cash, or $7.30 per common unit. Not only do we believe that this announcement marked a somewhat surprising turn of events for all parties involved, but we view it as one of those rare occurrences where each of the parties comes out of the transaction in a stronger position. Below, we highlight how each of the three companies under coverage stand to benefit from this transaction and we reiterate our Buy ratings on AMC, CNK, and NCMI and would continue to add to positions in each name.”

According to TipRanks.com, Wold is a 5-star analyst with an average return of 8.9% and a 58.7% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

AMC Entertainment has an analyst consensus of Strong Buy, with a price target consensus of $24.25.

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Based on AMC Entertainment’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $17.7 million. In comparison, last year the company had a net profit of $8.4 million.

Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock.

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AMC Entertainment Holdings, Inc. engages in the theatrical exhibition business through its subsidiaries. It operates through the United States Markets and International Markets segments. The company was founded on June 6, 2007 and is headquartered in Leawood, KS.