Shares of AMC Entertainment Holdings Inc. I HAVE C,
gathered 3.8% in premarket trading on Tuesday to extend the 14.9% increase from the previous session, which was fueled by New York Gov. Andrew Cuomo’s announcement that New York cinemas could open at 25% capacity a week. future. Wedbush analyst Michael Pachter reiterated AMC’s neutral rating over the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We believe that there is a significant desire to go to the movies, and this could significantly increase the AMC results in March / Q1 and Q2, given that AMC cinemas in New York are some of the best performing theaters in its domestic circuit.” , Pachter wrote in a note to customers. He said the NYC movement should attract other densely populated areas to reopen. “That being said, we wonder if the renewed desire will lead to demand, because people may be reluctant to participate in movies until they receive the vaccine or if the transmission rate drops significantly,” Pachter wrote. AMC is expected to report fourth-quarter results on or about March 4, but Pachter said the results will be a “non-event” as the focus will remain on liquidity. The stock has risen 209.0% so far, while the S&P 500 SPX,
gained 3.2%.