B.Riley Upgrades AMC Entertainment (AMC) to Buy

The analyst comments "We are also taking this opportunity to upgrade AMC Entertainment Holdings (AMC) from Neutral to Buy along with raising our PT from $7 to $13. We have remained impressed with management’s ability to weather the pandemic headwinds by both strengthening the balance sheet and negotiating with landlords to improve the cash runway into 2022. And as the largest exhibitor in North America that also operates the highest number of premium IMAX screens, we view AMC as well positioned to benefit from the industry’s projected resurgence and return to pre-pandemic attendance levels by 2023. Our only concern and reason for the prior Neutral rating had been the high levels of debt on the balance sheet and the strain this could place on future cash flows. However, with management increasingly signaling the ability and willingness to utilize equity to reduce the debt load, we can now be more constructive on the upside opportunity for the shares."