AMC Entertainment (AMC) shares plummeted 5.28% in intraday trading on Thursday, following a bearish analyst report from Citi. The decline comes as Citi analyst Jason Bazinet reaffirmed his Sell rating on the movie theater chain and significantly lowered the price target.
Citi reduced its price target for AMC Entertainment from $2.70 to $2.30, signaling a lack of confidence in the company's near-term prospects. This adjustment represents a substantial downside from the stock's current trading levels, potentially triggering a sell-off among investors.
The maintained Sell rating and lowered price target suggest that Citi sees continued challenges for AMC Entertainment in the competitive landscape of the movie theater industry. While specific reasons for the downgrade were not detailed in the available news, factors such as changing consumer behavior, the rise of streaming services, and ongoing recovery from pandemic-related disruptions may be contributing to the pessimistic outlook.
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