AMC shares fall for a third straight session on Wednesday after downgrades by Citigroup, B. Riley and Barrington Research

Citigroup, B. Riley and Barrington Research revised down their ratings on AMC Entertainment Holdings Inc (AMC), after the largest theater chain in the United States said it would temporarily go dark.

AMC said that all US theaters would be closed for a period of 6 to 12 weeks due to the coronavirus pandemic, as the company seeks to comply with local, state and federal directives.

Shares of AMC Entertainment Holdings closed lower for a third consecutive trading session in New York on Wednesday. The stock went down 0.40% ($0.01) to $2.47, after touching an intraday low at $2.11 and an intraday high at $2.99.

Shares of AMC Entertainment Holdings Inc have retreated 65.88% so far this year, following another 41.04% drop in 2019.

Citigroup revised down its rating on AMC’s stock to “Sell”, as it anticipates a total second-quarter shutdown to be mitigated by a “modest” recovery during the third quarter. Citi analyst Jason Bazinet cut AMC’s 12-month price target to a Street-low of $1.

B. Riley FBR revised down the stock to “Neutral” from “Buy”, while slashing its 12-month price target to $3.50.

Meanwhile, Barrington Research revised down AMC to “Market Perform” from “Outperform” and cut its 12-month price target on the stock to $7.

Analyst stock price forecast and recommendation

According to CNN Money, the 12 analysts, offering 12-month forecasts regarding AMC Entertainment Holdings Inc’s stock price, have a median target of $7.75, with a high estimate of $20.00 and a low estimate of $1.00. The median estimate represents a 213.77% upside compared to the closing price of $2.47 on March 18th.

The same media also reported that at least 6 out of 13 surveyed investment analysts had rated AMC Entertainment Holdings Inc’s stock as “Buy”, while 5 – as “Hold”. On the other hand, 1 analyst had recommended selling the stock.