AMC Price Prediction: AMC Entertainment Holdings plummets on a glaring analyst downgrade

NYSE:AMC dropped by 7.26% alongside another mixed day from the broader markets.
A series of Wall Street downgrades has sent the stock into free fall.
AMC did receive some good news as the State of California prepares for its reopening.

NYSE:AMC saw its volatility continue this week as it started off Monday soaring by nearly 30%. On Tuesday, shares were sent the other way as AMC fell by 7.26% to close the trading session at $13.02. Despite its recent volatility, AMC is still trading well above its 50-day and 200-day moving averages, and has still returned over 450% to investors over the past 52-weeks. While much of this was brought on by the Reddit short squeeze in late January, Wall Street is much more bearish on the company moving forward.

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The bearish forecast is evident in some recent analyst downgrades to AMC’s stock. CitiBank analyst Jason Bazinet has reiterated his sell rating of the movie theater chain, and has an active price target of $2 which represents a nearly 85% downside from Tuesday’s closing price. Other analysts have been just as bearish with price targets of $1 and even $0.01 from MKM Partners and LightShed Partners respectively. The negative downgrades are furthering the divide between the institutional side of Wall Street and retail investors, a relationship that was already severely damaged given the fallout from January.

AMC Stock forecast

AMC did receive some promising news on Monday when the state of California announced that it would officially be reopening by the end of March, which of course includes movie theaters. AMC is hoping to have all 53 of its theater locations open within the week, which does bode well, especially after New York reopened last week. The theaters will still be operating at limited capacity, with strict health regulations in place for attendees.

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