AMC-Carmike Merger Approved: AMC Is Now The Nation's Largest Movie Chain

AMC Entertainment Holdings Inc AMC's November has been a hit for the company. Shares are already up 10 percent in November following a record third quarter.

AMC is following its strong results with an approved merger deal with Carmike Cinemas, Inc. CKEC to become the nation's largest movie theater chain with 8,218 screens. Shareholders of Carmike Cinemas, the fourth largest chain, approved a $1.2 billion buyout from AMC.

Analyst's Take

B. Riley & Co. analysts are confident that the successful vote will be a positive catalyst for AMC shares.

“Although AMC shares have moved higher by more than 8 percent over the past week following the report of Q3 results, we continue to believe a successful vote would represent a positive catalyst for AMC shares to move them even higher,” explained B. Riley analysts.

Analysts are also expecting continued improvement in box office trends in 2017/2018.

B. Riley has a Buy rating on AMC with a $40 price target and a Neutral rating and $32.75 price target on Carmike shares.

At last check, Carmike shares were flat at $34.05, and AMC shares were up 0.14 percent at $34.55.