Citi lowered its AMC Entertainment Holdings Inc. AMC, +1.24% price target to $1.55 from $1.65 Friday and maintained its sell rating for the movie theater chain and meme stock darling. “With the rapid spread of COVID-19 globally, movie theaters have been forced to shut down in many countries,” wrote Citi analyst Jason Bazinet, in a note. “As a result, the global box office remains below pre-pandemic levels. Given the proliferation of multiple streaming services over the last several years, we see downside risk to the global box office going forward.” AMC recently won approval for its revised plan to convert AMC Preferred Equity APE, +3.65% units to common stock. “To arrive at our target price, we continue to assume AMC pays down its debt by issuing equity at the mid-point of the market value of the APE units and AMC’s common stock,” wrote Citi’s Bazinet. “This implies AMC’s share count grows by over 100%.” AMC shares fell 0.4% Friday while the APEs rose 1.8%.
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