Shares of AMC Entertainment Holdings Inc. surged notably on Friday, July 11, 2025, marking their fourth consecutive gain and the largest increase in six weeks, following a bullish upgrade from Wedbush Securities. The research firm elevated AMC’s rating from "neutral" to "outperform," reflecting renewed optimism about the movie-theater chain’s prospects amid a more stable and consistent slate of film releases expected over the coming quarters.
Wedbush analyst Alicia Reese, who had maintained a neutral outlook on AMC since August 2023 after previously rating the stock as underperform, spearheaded this upgrade. The move comes as AMC positions itself to capitalize on a recovering box office environment and strategic operational improvements.
Wedbush’s upgrade also extended to Cinemark Holdings Inc., another major movie theater operator, signaling a broader positive outlook for the theatrical exhibition sector. Both companies are expected to benefit from the more predictable and steady flow of new movie releases anticipated in 2025 and beyond.
In conjunction with the rating upgrade, Wedbush raised its price target for AMC shares from $3.00 to $4.00, suggesting a potential upside of nearly 20% from the previous closing price. This updated target reflects confidence in AMC’s ability to regain market share, particularly through its premium screens across North America, and its expansion initiatives in the United Kingdom and European Union.
AMC’s recent financial maneuvers have also played a crucial role in bolstering investor confidence. The company has taken significant steps to address near-term debt obligations by repaying or deferring all debt due in 2026. This effort is part of a broader debt restructuring agreement with creditors that secured approximately $223 million in new financing and converted at least $143 million of existing debt into equity. The restructuring involved exchanging $590 million of existing notes for $825.1 million in new Senior Secured Notes due in 2029, effectively extending AMC’s debt maturity profile.
Furthermore, AMC announced a conditional redemption of its 2026 notes, contingent upon the successful completion of a private offering of Senior Secured Notes due in 2029, expected to raise at least $223 million. The company also resolved litigation with holders of its 7.5% Senior Secured Notes as part of this agreement, removing a significant overhang from its balance sheet.
Despite these positive developments, AMC’s financial position remains challenging. According to InvestingPro data, the company carries a substantial total debt load of $8.3 billion, accompanied by a current ratio of 0.42, indicating potential liquidity constraints. However, AMC plans to mitigate these risks by closing underperforming locations in 2025 and focusing investments on its most productive theaters. Notably, revenue per screen is already trending 3% higher than pre-pandemic 2019 levels, even before factoring in these new investments.
Over the last twelve months, AMC generated $4.55 billion in revenue, though it operates with relatively thin gross profit margins of approximately 13%. The company’s quarterly earnings report from May 7, 2025, showed an earnings per share (EPS) loss of $0.58, slightly better than the consensus estimate of a $0.61 loss. However, revenue for the quarter was $862.5 million, falling short of analysts’ expectations of $983.23 million and down 9.3% compared to the same period last year.
Looking ahead, Wedbush projects that stabilizing box office revenues will allow AMC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to cover interest expenses, eliminating the need for further share issuances. The firm forecasts mid-to-high single-digit growth in box office revenue over the next few years, followed by more moderate low-to-mid single-digit growth thereafter. AMC’s current enterprise value to EBITDA multiple stands at 34x, indicating that investors are pricing in significant growth expectations.
In an effort to bolster revenue streams beyond ticket sales, AMC has partnered with National CineMedia Inc. to introduce a "platinum spot" advertising option starting July 1, 2025. This initiative increases the number of advertisements shown before movies, aiming to generate additional income for the financially pressured theater chain.
AMC’s stock performance reflects this mix of cautious optimism and ongoing challenges. On the day of Wedbush’s upgrade, AMC shares climbed $0.35, closing at $3.35 with a trading volume of over 34 million shares, triple the average daily volume. The company’s market capitalization stands at approximately $1.45 billion, with a beta of 1.43 indicating moderate volatility relative to the broader market. AMC’s 52-week trading range spans from a low of $2.45 to a high of $5.76, with its 50-day and 200-day moving averages hovering around $3.08 and $3.16, respectively.
Analyst sentiment on AMC remains mixed. While Wedbush has turned bullish, other firms have maintained more cautious stances. Roth MKM downgraded its price target from $3.25 to $3.00 with a neutral rating in April 2025, B. Riley initiated coverage with a neutral rating and $3.00 target in May, and Citigroup reiterated a sell rating with a price target raised slightly to $2.60 in late May. MarketBeat data shows a consensus rating of "Hold" among analysts, with an average price target around $4.26.
Institutional investors hold a significant stake in AMC, owning nearly 29% of the company’s shares. Notable shareholders include Vanguard Group Inc., which increased its holdings by 4.4% to over 36.8 million shares, Deutsche Bank AG, which raised its position by more than 50% to approximately 283,000 shares, and Northern Trust Corp., which boosted its stake by 12.6% to over 3.3 million shares. New positions were also established by KLP Kapitalforvaltning AS and Susquehanna Fundamental Investments LLC during the last quarter.
AMC Entertainment Holdings, Inc., founded in 1920 and headquartered in Leawood, Kansas, operates theaters across the United States and Europe. The company continues to navigate a complex landscape shaped by shifting consumer behaviors, evolving industry dynamics, and the lingering effects of the pandemic on theatrical attendance.
Wedbush’s recent upgrade and AMC’s strategic financial restructuring highlight a pivotal moment for the beleaguered cinema chain. While challenges remain, the company appears poised to leverage a more consistent movie release schedule and operational efficiencies to regain footing in a competitive entertainment market.
