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Shares of AMC Entertainment Holdings Inc (NYSE:AMC) are now lower by more than 8 percent over the past five days as the company struggles to compete against streaming services and mobile devices.
Despite a selloff, some among Wall Street are defending AMC's outlook. Loop Capital Markets' David Miller maintained a Buy rating on AMC's stock with an unchanged $39 price target given the company's global scale, and a box office environment that remains "healthy" with no signs of deteriorating.
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Selloff Not Earnings Related
According to Miller, AMC's stock weakness isn't earnings related as the reported earnings per share of $0.35 beat his $0.19 per share estimate and the Street's $0.05 per share estimate. Beyond the headline numbers, AMC's revenue per screen, concessions per-caps, concessions margins, and cumulative adjusted margins all hit record levels.
The earnings report led the analyst to conclude that its business remains "strong" which doesn't support the stock's move to the downside.
Video On Demand Not A Real Threat
Miller also argued the PVOD (premium video-on-demand) threat isn't even real. If it was real then shares of AMC's peers, such as Cinemark Holdings, Inc. (NYSE:CNK), would also be struggling. In fact, Cinemark's stock is trading near 52-week highs and is outpacing the S&P 500 index.
The analyst concluded that AMC's stock is trading at a discount whenc compared to rival Regal Entertainment Group (NYSE:RGC) even though Regal doesn't have exposure to foreign markets.
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Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.