AMC Stock Shows Promise Amid Partner Expansion with Dolby

SAN FRANCISCO and LEAWOOD, Kan. — AMC Entertainment Holdings Inc. is currently valued at $2.64 per share, about 13% lower than its intrinsic value of $3.03, according to GuruFocus. This potential undervaluation positions AMC as an appealing opportunity for value investors looking for long-term gains.

Market projections suggest that AMC’s profits could skyrocket by 96% over the coming years. This anticipated growth could further enhance stock performance, particularly for investors seeking capital appreciation. Moreover, AMC’s stock exhibits high volatility indicated by its beta, which may present advantageous buying opportunities during market downturns.

In addition to its financial performance, AMC has expanded its strategic partnership with Dolby Laboratories Inc. to enhance the cinema experience. The two companies announced the addition of 40 new Dolby Cinema locations across the United States by 2027, increasing the total to over 200. This expansion is part of AMC’s commitment to invest in innovative technology and provide premium experiences for moviegoers.

Kevin Yeaman, President and CEO of Dolby Laboratories, expressed excitement about the partnership: “Premium moviegoing is defining the modern box office. In expanding our longstanding partnership with AMC, we look forward to providing even more audiences with access to the most immersive film experiences you can only get at Dolby Cinema.”

AMC’s CEO, Adam Aron, echoed these sentiments, stating, “For a decade, AMC and Dolby have provided moviegoers with incredible premium experiences—making the biggest blockbusters even bigger, brighter, louder, and more immersive. The expansion of this partnership is a powerful demonstration of AMC’s ongoing commitment to deliver this premium experience to even more of our theaters and AMC moviegoers across the United States.”

The need for premium movie experiences has surged, with Dolby recently reporting that its Cinema had its strongest box office performance in history in 2024. Over 725 films are set to be released with Dolby Vision and Dolby Atmos technologies, which are pivotal for attracting moviegoers.

Analysts weigh in on AMC’s financial outlook, citing various stock price targets. Most recently, ROTH MKM set a price target of $3.25, maintaining a neutral rating. B. Riley Securities followed suit with a neutral rating, lowering their target from $12 to $8, while Citigroup downgraded their rating on AMC.

As AMC moves forward, its collaboration with Dolby and projected profit growth marks an interesting chapter in its development. For investors keen on capitalizing on its potential rebound, the current undervaluation could present a unique entry point.