The Leawood, KS-based company, which operates movie theaters across the U.S., will benefit from a strong 2017 box office that could meet the records set during 2015, the firm said.
"The stock has under-performed peers due to its limited liquidity and is now trading at a meaningful discount," RBC added. "We have a positive outlook on the 2017 box office that we think the market currently isn't focusing on but will begin to around the second quarter."
AMC's attendance monetization, which refers to average ticket prices and concessions per capita, could receive a boost from stronger IMAX (IMAX) or 3D movie offerings and increased demand for food and beverage products, the firm said.
Additionally, the company's investments in premium experiences could cause AMC to significantly outperform its peers, RBC added.
AMC stock is up by 3.53% to $20.80 in early-morning trading on Tuesday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.
You can view the full analysis from the report here: AMC