Wedbush Upgrades AMC to Outperform, Stock Soars 11%

Wedbush upgraded AMC Entertainment (NYSE:AMC) to Outperform from Neutral, lifting its price target to $4 from $3, as improving fundamentals and a clearer financial path forward brighten the outlook for the theater chain. As a result, the stock surged more than 11% today.

The firm cites multiple reasons for the upgrade. First, a steadier flow of movie releases is expected to boost box office performance over the next several quarters. AMC is also poised to capture market share with its premium screen dominance in North America and expansion plans in the UK and EU. On the financial front, the company has either repaid or pushed out all debt that was due in 2026, eliminating a major overhang.

Wedbush also highlighted that AMC is likely done with major share issuances, removing a significant headwind. The company is focusing on closing underperforming locations while reinvesting in its best-performing theaters—those already trending 3% above 2019 revenue per screen levels before additional upgrades.

Capital spending is expected to remain flat in 2025, signaling discipline as AMC enhances its core assets. With improving free cash flow and a normalized box office pipeline, Wedbush believes the company can trade at an 8x EV-to-EBITDA multiple—right in line with historical averages during stable periods.

While growth remains limited and the broader industry still faces structural challenges, AMC’s current positioning and recovery trajectory warrant a more constructive outlook, according to the firm.