AMC Entertainment Holdings Inc (AMC) said on Thursday that it would reopen its US movie theaters in August.
AMC had intended to reopen movie theaters in July, weeks prior to the release of Walt Disney’s “Mulan” and Warner Bros. Entertainment Inc’s “Tenet.”
However, with “Tenet” now postponed for a third time, the largest US exhibitor has been prompted to shift strategy.
At present, “Mulan” is scheduled to be released on August 21st, but Walt Disney Co could push back the release in US cinemas, in case the COVID-19 pandemic continues to pick up pace.
The latest data by the Center for Systems Science and Engineering at Johns Hopkins University showed total confirmed COVID-19 cases in the United States had already surpassed 4.038 million.
It is possible that other major movie theater chains push back their July openings as well.
Shares of AMC Entertainment Holdings closed higher for the third time in the past ten trading sessions in New York on Thursday. The stock went up 0.74% ($0.03) to $4.06, after touching an intraday low at $4.01 and an intraday high at $4.17.
Shares of AMC Entertainment Holdings Inc have retreated 43.92% so far this year, following another 41.04% drop in 2019.
Earlier in July, AMC reached a debt agreement, which should help the company keep its business afloat through 2021. In June, AMC said it could face bankruptcy, as its US movie theaters have been shut since mid-March due to the coronavirus outbreak.
Analyst stock price forecast and recommendation
According to CNN Money, the 8 analysts, offering 12-month forecasts regarding AMC Entertainment Holdings Inc’s stock price, have a median target of $4.00, with a high estimate of $7.00 and a low estimate of $1.00. The median estimate represents a 1.48% downside compared to the closing price of $4.06 on July 23rd.
The same media also reported that at least 8 out of 11 surveyed investment analysts had rated AMC Entertainment Holdings Inc’s stock as “Hold”, while 3 – as “Sell”.