Analysts fell to the sidelines weighing in on AMC Entertainment (AMC) and Starbucks Corp (SBUX) with neutral ratings, indicating that the experts are neither bullish nor bearish on the stocks.
AMC Entertainment (AMC)
AMC Entertainment received a Hold rating and a $17 price target from B.Riley FBR analyst Eric Wold today. The company’s shares closed on Friday at $14.46.
Wold noted:
“We are downgrading AMC Entertainment Holdings (AMC), from Buy to Neutral, and lowering our PT, from $29 to $17, due to a number of near-term concerns/headwinds that include: (1) potential relative box office metrics and margin pressures in 4Q18 associated with the ramp in Stubs A-List membership; (2) expected underperformance, relative to the industry in 4Q18, from declines in average IMAX screen box office; (3) consensus’ 1Q19 and full-year 2019 adjusted EBITDA estimates that seem aggressive, given our box office outlook and uncertainty around the impact on Stubs A-List during its ramp; and (4) the potential for the company’s relatively high net debt ratio, vs. its peers, could help to hold back valuation multiples (especially with the near-term likelihood of an IPO of the European assets diminishing).”
According to TipRanks.com, Wold is a 1-star analyst with an average return of -2.2% and a 39.7% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for AMC Entertainment with a $22.67 average price target.
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Starbucks Corp (SBUX)
In a report released today, Nick Setyan from Wedbush maintained a Hold rating on Starbucks Corp, with a price target of $64. The company’s shares closed on Friday at $64.70.
According to TipRanks.com, Setyan is a 4-star analyst with an average return of 5.1% and a 55.7% success rate. Setyan covers the Services sector, focusing on stocks such as Del Taco Restaurants, Jack In The Box Inc, and Cheesecake Factory.
Currently, the analyst consensus on Starbucks Corp is a Moderate Buy with an average price target of $69.80, implying a 7.9% upside from current levels. In a report issued on January 11, Goldman Sachs also downgraded the stock to Hold with a $68 price target.
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