After the second public offering made AMC Entertainment Holdings (NYSE:AMC) a profit of approximately $428 million, an analyst believes that the financial situation of the theater operator is increasingly consolidated, which may cause its stock to “rise substantially.” The consolidation of the event led to B.Riley analyst Eric Wold to increase his target price for AMC from $13 to $16 and reiterated his buy rating on the stock. The theater owner said yesterday that it issued 43 million new Class A shares at an average price of $9.94 per share, which is enough to keep it in circulation for the rest of the year. As early as January of this year, AMC has been scrambling to raise $1 billion from lenders to make ends meet, but the company seems to have declared bankruptcy, but due to a large number of short-term crunches, it has been able to take advantage of the soaring stock price.
Although AMC is no longer on the brink and its financial situation seems to have improved a lot, the U.S. Centers for Disease Control and Prevention (AMC) has also benefited from the U.S. Centers for Disease Control and Prevention (CDC). They said they were vaccinated with COVID- 19 Most people with vaccines no longer need to wear masks, nor do they need to keep their distance from society in public. Film studios are also increasing film production, which will help make theaters a destination again. In a note to investors, Wold said that the combination of better finances, other agreements reached with studios regarding movie releases in cinemas, and global box office recovery, bodes well for AMC. His price target indicates that there is still room for 25% upside in the stock’s closing price yesterday, but more positive news may further increase the stock price.