By Sam Boughedda
Investing.com — AMC Entertainment Holdings Inc (NYSE:AMC) shares fell 2.6% Thursday following a bearish rating from Wedbush analyst Michael Pachter.
Pachter downgraded the stock to underperform from neutral, keeping the price target at $7.50.
The downgrade is put owing to the company's current valuation, with the analyst believing that the current $7.50 price target "generously" values the company.
In a note to investors, Pachter said that the "ultimate majority of retail ownership will eventually cash out and move on."
However, the analyst is upbeat on the overall industry, as movie theater attendance in the third quarter began to increase when top-tier titles finally came back to the calendar. He also cited the fourth quarter box office sales so far as being encouraging.
The American movie theatre chain's stock traded around $39.72 as of mid-morning.