AMC Price Target Slashed as Citi Remains Negative on Stock

AMC Entertainment stock (NYSE: AMC) is facing renewed headwinds as Citi lowered its price target on the stock, reflecting concerns over box office performance and share dilution. The recent target cut adds to a series of negative analyst revisions, amplifying worries about the company's financial stability and market trajectory.

The stock has been under pressure, recently hitting a new 52-week low of $1.45 in the last week, only to add 13.1% during Friday's session. This downward trend, one that has seen AMC's stock shed 22.64% over the past month follows a disappointing third-quarter earnings report and persistent worries about the sustainability of AMC's business model in a rapidly evolving entertainment landscape.

Citi analyst Jason Bazinet reduced the firm’s price target on AMC from $2.30 to $1.30, reiterating a “Sell” rating on the shares. The rationale behind this cut centers on weaker-than-expected U.S. box office receipts during the fourth quarter of 2025. This underwhelming performance casts doubt on AMC's ability to generate sufficient revenue to service its debt and fund future investments.

Further exacerbating concerns is the company's decision to increase its authorized shares from 550 million to 1.1 billion. This share dilution is expected to put further downward pressure on the stock price, as each share represents a smaller fraction of the company's overall value.

Citigroup's revised price target aligns with a broader trend of negative analyst sentiment surrounding AMC. Zacks Research downgraded the stock from “Strong-Buy” to “Hold” earlier in November 2025, while Weiss Ratings has maintained a “Sell (E+)” rating. Roth Capital has also lowered its FY2026 earnings per share estimates for AMC, now projecting a loss of $0.73 per share, significantly worse than the previous estimate of a $0.40 loss. These downgrades reflect a growing consensus among analysts that AMC faces significant challenges in the coming years.

AMC's financial performance in the third quarter of 2025 further fueled investor anxieties. The company reported a loss of $0.21 per share, missing the consensus estimate of a $0.18 loss. Revenue declined by 3.6% year-over-year, indicating a struggle to maintain growth in a competitive market. The combination of declining revenue and widening losses has raised concerns about AMC's ability to navigate the changing entertainment landscape and generate sustainable profits.

Price Targets

The increase in authorized shares provides AMC with greater financial flexibility, but it also carries the risk of diluting existing shareholders' equity. The company may use the additional shares to raise capital, fund acquisitions, or pay down debt. However, the issuance of new shares would increase the total number of shares outstanding, reducing the value of each individual share.

The combination of disappointing box office revenues, analyst downgrades, and concerns about share dilution has created a challenging environment for AMC. The company must demonstrate its ability to adapt to the changing entertainment landscape and generate sustainable profits in order to regain investor confidence. The recent target cut and negative analyst sentiment highlight the significant challenges that AMC faces in the coming months and years, and the markets will be watching closely to see if the cinema chain can turn the tide.