Wedbush Securities Reiterates Outperform, Raises Price Target On AMC Entertainment On Q4 Earnings Upside

In a report published Wednesday, Wedbush Securities analyst Michael Pachter reiterated an Outperform rating on

, and raised the price target from $33.00 to $35.00. In the report, Wedbush Securities noted, "We believe that AMC is in the early innings of the implementation of initiatives to increase concessions and admissions revenues through reinvestment in its current asset base offering a high return on investment opportunity. AMC seems to be ahead of other major exhibitors at piloting and focusing on rolling out differentiated theatre offerings such as dine-in theatres, luxury reseating, and serving alcoholic beverages. Results thus far have shown significant returns, in some cases above 100% cash-on-cash returns after one year. "If AMC's theatre portfolio is able to offer a large enough pool of these high-return opportunities, we believe AMC will be able to achieve revenue growth faster than the industry and operating margin expansion over the next several years. We believe AMC's large portfolio and exposure to larger DMAs allow for opportunities to increase competitive positioning through these initiatives that may not make as much strategic sense for other exhibitors to focus on." AMC Entertainment closed on Tuesday at $30.90.