AMC Entertainment is back on the highlights. The movie-theater giant soared almost 10% in early trading on July 11, 2025, recording its most significant one-day advance in six weeks and setting itself up to enjoy a fourth consecutive rise. The catalyst? A bullish upgrade at Wedbush, where the future of the original meme stock is becoming less uncertain after several years of confusion and fluctuation.
The Relevance of the Upgrade
Alicia Reese, an analyst at Wedbush, changed the price target to $4 from $3 and raised its rating on AMC from neutral to outperform. This analyst had a neutral rating on the company from August 2023. The new target implies a 33% upside by the Percentage method based on Thursday’s closing price of $3.01. The action is based on the fact that 1) the fundamentals of AMC look better, and 2) as
Reese highlights, there are several strong catalysts:
- A consistent flow of films that are likely to enhance box office leading to the following quarters.
- An increase in market share is expected in 2025 and 2026 due to the premium screens and expansion ambitions of AMC in the UK and EU.
- Debt relief, with AMC having repaid or deferred all of its debt due in 2026, eliminating a significant overhang on the stock.
Box Office Stages a Recovery
Following a slow beginning in 2025, AMC is headed in a better direction. The opening quarter was down in recent history, with the revenue falling to $862.5 million against the previous year at $951.4 million and worldwide attendance decreasing to 42 million against the previous at 46.6 million. However, CEO Adam Aron says that they have seen an explosion in demand for movies since April, as more blockbuster movies have been released.
The local box office is currently experiencing its strongest year in five years as recent successes such as Jurassic World Rebirth and How to Train Your Dragon are attracting massive audiences. The premier of one of James Gunn’s Superman this week is likely to bring additional heat, and no one can wait to see Avatar: Fire and Ash in December.
Wedbush expects AMC EBITDA to surpass its interest costs, in which case it will not have to issue further shares.
The Relief of Debt Restructuring
The AMC has a massive debt burden, one of the most significant problems that the company faced during the pandemic years and changing consumer behavior. Earlier last week, AMC entered a large debt-restructuring deal with its major creditors, raising $223.3 million in new financing agreements to retire endangered 2026-dated debt. It also features the exchange of at least $143 million in debt currently on offer to convert into equity, which will increase with time.
This rearrangement does not just fortify the balance sheet of AMC, but it also settles long-standing litigation against users. AMC CEO Adam Aron described the agreement as a key and strategic step that puts his company in a stronger position to recover.
Investor Sentiment and Market Reaction
AMC shares are 24.6% lower this year, compared to a 6.8% rally of the S&P 500 despite Friday. However, the recent update and positive box office performance, have awakened the interest of investors, particularly those who have not forgotten the meme-stock days of AMC.
At least, the morale has changed to cautious optimism. Provided that its blockbuster releases can stay on track and that the financial discipline of AMC persists, it might be finally experiencing a breakthrough.
Future Outlook
Amid the newfound optimism, Wedbush analyst Reese warns that the movie theater business is a low-growth industry. She continued, writing to clarify that we do not see significant growth to 2025 or to 2026 or beyond. Box office is projected to grow at a mid-high single-digit rate in the next few years and arrive at a less dynamic growth pattern.
Nevertheless, AMC is best positioned to take advantage of:
- A more stable film schedule
- Increasing merchandise and concession revenue
- High-end screen improvements and expanding overseas
It is also shutting down low-performing theaters and investing in its strongest sites, and the revenue per screen is already growing at 3% compared to the same period in 2019.
Moving forward, the future of AMC will be linked to how Hollywood will retain patrons who come and watch movies and the management’s commitment to financial sustainability. Although the chance of very speedy development is remote, the foundations of moderate, sustainable development are established. Having reduced its debt load and with a more predictable box office pipeline, AMC could have consigned its worst to history.
