AMC Entertainment Holdings

Ticker: AMC

Rating: Underperform

Target Price: $26.00

Current Price: $31.00

Market Cap ($B): $4.1

Credit Suisse, Where we are different: "(1) We are skeptical of AMC’s recliner upgrade strategy, given we have seen minimal lift in CFROI since AMC began reseating their screens with recliners. (2) We are not bullish on AMC’s overseas acquisitions in Europe (Odeon/UCI & Nordic cinemas) given the level of debt required to finance these acquisitions and the minimal impact to CFROI from existing US recliner initiatives. (3) We model flat box office growth in 2017 vs. sell-side consensus of LSD-MSD growth, as consensus is skewed higher by outliers using less granular forecast methodology."

Source: Credit Suisse

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