AMC Shares Still Overpriced According to Analyst

AMC Entertainment (NYSE: AMC) shares have tumbled in 2022, down 77%, but Wedbush analyst Michael Pachter believes the stock is still overpriced.

According to TheFly, Pachter told investors in a research note that theatrical exhibition is on the road to normalisation with the release slate improving in 2023, even though consumer preferences are still settling following the pandemic.

The analyst, who maintained an Underperform rating and $2 per share price target on the stock, is said to have added that AMC Entertainment has the cash to continue its operations via an improved theatrical environment in 2023, with t movie theatre chain having a vast network of premium large format screens.

However, Pachter noted that AMC is still contending with its massive debt balance while looking for ways to bolster confidence among its retail shareholders through new business ventures and screen acquisitions.

AMC shares fell over 4% during Wednesday's session, although they gained over 1% in early Thursday trading.

According to TipRanks, out of four analysts covering AMC, two have a Hold rating, and two have a Sell rating on the stock with the average price target of $3.53 per share, representing a potential 8% downside from Wednesday's closing price.

Elsewhere on Tuesday, AMC CEO Adam Aron said in a series of tweets that he has recommended to the Twitter board that they freeze his salary in 2023.

“Biggest inflation in 40 years, so in 2023 companies will grant large % salary raises. But I do not want ‘more' when our shareholders are hurting. So, I recommended to the AMC Board to red circle and freeze both my target cash and target stock pay for 2023. NO INCREASE,” Aron wrote.