Shares of AMC Entertainment Holdings Inc. AMC,
gained 3.8% in pre-sale trading on Tuesday to increase the surge from the previous session by 14.9%, fueled by the announcement by New York government Andrew Cuomo that the movie theaters in New York can open next week with 25% capacity. Wedbush analyst Michael Pachter reiterated the neutral rating he had at AMC over the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We think there is a significant pent-up desire to go to the movies, and this could potentially contribute significantly to AMC’s results in March / Q1 and Q2, as AMC’s NYC theaters are among the best theaters in its local circle. is, “Pachter said. write in a note to customers. He said the move from NYC should attract other densely populated areas to reopen. “That said, we question whether the pent-up desire will result in demand, as people will remain reluctant to attend the movies until they receive their vaccine, or in the event that the transfer rate drops significantly,” Pachter wrote. According to AMC, the results for the fourth quarter will be around March 4, but Pachter said the results will be a ‘non-event’ as the focus will remain on liquidity. The stock has risen 209.0% so far, while the S&P 500 SPX,
achieved 3.2%.
