A man walks past the AMC Georgetown 14 Theatres in Washington, DC on June 3, 2021.
Mandel Ngan | AFP | Getty Images
Research firm Wedbush raised its 12-month price target on shares of AMC Entertainment on Friday…by $1.
As AMC shares nearly doubled this week to $51 riding a wave of enthusiasm from Reddit posters, Wedbush took its price target to $7.50 from $6.50. That would still entail an 85% plunge.
“AMC has made the best of its current ‘Meme Stock’ status by selling shares at a premium, and has raised significant capital doing so,” Wedbush analyst Alicia Reese said in a note.
“Should AMC use its current cash balance to meaningfully reduce its debt and create earnings growth opportunities, we could envision a justified price target as high as $10,” Reese said.