The future for AMC Entertainment () was looking as dark as the theaters it was forced to close due to the COVID-19 pandemic, but an analyst says the lights may go up again after all.
Almost two months after MKM Partners analyst Eric Handler said bankruptcy “appeared likely” for AMC, the Wall Street pro now says the threat has “lessened considerably,” and he hiked his fair value estimate of the theater operator’s stock from $1 per share to $5 per share.
Ready for a curtain call
There was good reason for the dire warning. AMC had slashed its dividend, its executives agreed to take deep pay cuts, and it closed all its theaters in a bid to conserve cash. Even the