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AMC Entertainment's Convenience Initiatives Yield Growth; Target Raised To $40 By Barrington Research

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In a report published Friday, Barrington Research analyst James C. Goss maintained an Outperform rating on AMC Entertainment Holdings Inc (NYSE: AMC), while raising the price target from $32 to $40. The company had a "record year despite soft box office," Goss wrote.

In the report, Barrington Research noted, "Revenues were nominally lower at $712.2 million, below our $721.0 million estimate, with AMC's IMAX position playing a role in per screen comps. Adjusted EBITDA of $140.1 million topped our $129.4 million estimate, a significant increase from the $112.9 million level reported a year ago. EPS of $0.30 were above our $0.26 estimate on net income of $29.8 million."

"AMC's customer convenience initiatives are successfully providing multiple levers to enhance growth and profitability. These various initiatives interact in a variety of ways that increase the complexity of the facilities management and customer interaction process but in a positive, competitive tension manner," the analyst commented, while adding, "Management stresses that the long tail of operational improvements in the reseated theatres is a result of offering the whole array of comfort and convenience options…the reseated theatres continue to achieve double-digit attendance growth, resulting from the full suite of convenience offerings and the combined impact of attendance gains early on supplemented with price increases a little later as the pace of gains in attendance begins to moderate."

Latest Ratings for AMC

DateFirmActionFromTo
Aug 2016Loop CapitalInitiates Coverage onBuy
Jun 2016B. RileyUpgradesBuy
Jun 2016Credit SuisseAssumesOutperform

View More Analyst Ratings for AMC
View the Latest Analyst Ratings

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