AMC Entertainment Boosted by Bullish Wedbush Upgrade

NEW YORK, NY

AMC Entertainment saw significant gains in its stock price on July 11, 2025, following a positive upgrade from Wedbush. The movie-theater giant experienced its most significant one-day rise in six weeks, positioning itself for a potential fourth consecutive increase.

Alicia Reese, a Wedbush analyst, raised the company’s price target from $3 to $4, upgrading its rating from neutral to outperform. This upgrade is a notable shift for Reese, who held a neutral stance on AMC since August 2023.

The new price target suggests potential upside based on AMC’s closing price of $3.01 on Thursday. Analysts attribute the upward movement to improved fundamentals and strong catalysts. Despite a sluggish start to 2025 for the company—where first-quarter revenue fell to $951.4 million and attendance dropped to 42 million—CEO Adam Aron reports a sudden uptick in movie demand since April.

Recent blockbusters like “Jurassic World Rebirth” and “How to Train Your Dragon” have drawn larger audiences, marking the local box office’s strongest performance in five years. Aron is particularly optimistic about the upcoming premiere of a new Superman film and the expected excitement surrounding “Avatar: Fire and Ash,” set to release in December.

Wedbush anticipates that AMC’s earnings before interest, taxes, depreciation, and amortization (EBITDA) will surpass its interest costs, potentially eliminating the need for further share issuances. The company continues to face challenges due to a substantial debt load, a major concern since the pandemic altered consumer behaviors.

Last week, AMC entered a significant debt-restructuring agreement that raised millions in new financing to manage its 2026 debt obligations. The deal involves converting part of the available debt into equity, likely fortifying the company’s balance sheet and addressing ongoing litigation.

Despite being down 24.6% this year compared to the S&P 500’s 6.8% gains, AMC’s recent performance is rekindling interest among investors who remember its meme-stock days. Analyst Reese notes a shift from despair to cautious optimism, even as she cautions that the movie theater sector remains a low-growth industry.

Going forward, AMC’s success may depend on its ability to retain patrons and the management’s dedication to financial sustainability. Although rapid growth seems unlikely, the foundation for moderate, steady development appears to be taking shape.