AMC Sees Price Target Doubled At Wedbush Amid Meme Stock Renaissance

AMC Entertainment Holdings Inc AMC shares spiked Monday after Wedbush analyst Michael Pachter doubled the price target on the cinema chain, MarketWatch reported.

What Happened: AMC was among a pack of so-called meme stocks whose shares were buoyant on Monday, the others include GameStop Corporation GME and the headphone manufacturer Koss Corporation KOSS. 

Meme stocks were significantly higher as of Monday’s closing with GameStop rallying over 41% and Koss up 27.5%.

Pachter upped his target for AMC from $2.50 to $5.00 and reiterated his neutral rating. The analyst wrote it was “tough to get positive here, despite rising industry optimism,” as per MarketWatch.

“AMC may take years before it is able to revisit its prior growth strategy as it repays its growing mountain of debt,” according to the Wedbush analyst.

See also: How to Buy AMC Stock

AMC stock has soared 325.5% on a year-to-date basis. On Monday, the company’s shares closed 15.4% higher at $9.29 and fell almost 1.7% in after-hours trading.

Why It Matters: AMC shares rallied in February as well after New York Governor Andrew M. Cuomo announced the reopening of theaters.

The reopening mandate calls for a capacity cap of 25%, enhanced air filtration, ventilation, and purification norms.

AMC CEO Adam Aron said this week that he was impressed with the Reddit investors who fueled the rally in meme shares, including in his company. 

See Also: AMC Dishes Out Bonuses For CEO Adam Aron, Top Execs

“You’re seeing millions and millions of people rally behind saving AMC,” said Aron.

AMC is due to release its fourth-quarter results after Wednesday's closing.

A Technical Analysis of AMC was Discussed on Tuesday's Get Technical with Neal: 

Photo courtesy: Coolcaesar via Wikimedia