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AMC Entertainment Jumps on Upbeat Reopening Outlook

AMC missed estimates for the first quarter, but it is bullish on its prospects as the world reopens.
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Shares of AMC Entertainment Holdings Inc.  (AMC) - Get Report jumped Friday after the movie theater company provided an upbeat outlook for the rest of the year due to the pandemic reopening, even as the company reported another quarter of big losses.

"We finally can now say that we are looking at an increasingly favorable environment for movie-going and for AMC as a company over the coming few months. This is the result of a successful and steadily growing vaccination program in the U.S., Europe and the Middle East, especially so across the United States," CEO Adam Aron said. 

The company lost $567.2 million in the quarter, or $1.42 per share, on revenue that fell 84% to $148.3 million. Analysts were expecting a loss of $1.31 per share on revenue of $156.3 million. 

AMC shares were rising 5.2% to $9.47 per share at last check. 

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Here's what analysts were saying about the company's quarter:

B. Riley analysts rate the company as a buy with a $13 price target. "AMC is well positioned to benefit from recent market share shifts, a leading position with IMAX screens, an attractive blockbuster-heavy film slate and plans for California and NYC to move to 100% capacity this summer," said analyst Eric Wold. 

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Wedbush, meanwhile, had a neutral rating and $6.50 per share price target on the company, with analyst Alicia Reese stating that "it will take AMC years to repay its debt burden, and longer until it is able to revisit its growth strategy."

MKM Partners rates the company as a sell with a $1 price target as "liquidity continues to improve, but we remain hung up on the high number of shares outstanding and a still high level of debt," according to analyst Eric Handler.

Credit Suisse has an underperform rating and $1.55 price target as "management remains optimistic that it will continue to enjoy somewhat elevated pricing as enthusiastic theatergoers return after a year at home."