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Fly News Breaks for July 15, 2019
AMC
Jul 15, 2019 | 07:16 EDT
MKM Partners analyst Eric Handler lowered his price target on AMC Entertainment to $8.50 and kept his Neutral rating citing the weakness in the U.S. box office, with concerns about the 2020 slate also "coming into play". From a broader perspective, the analyst is also worried about the company's financials, including its overlevered balance sheet, 2019 cash burn of about $100M, and a lack of evidence that its subscription service is EBITDA-accretive. Handler expects another year of negative free cash flow and additional cash burn in 2020, even though he sees European box office softening the impact from a weaker-than-projected domestic market.