Shares of meme stock favorite AMC could be headed for a nearly 70% pullback, according to Citi. The firm lowered its price target on AMC stock from $15.50 to $4.75 following a slew of company moves including a reverse stock split, a recent equity raise as well as a conversion of equity units to common stock. Citi also reiterated a sell rating on AMC. AMC YTD mountain AMC stock. AMC stock has plummeted roughly 77% from the start of the year. Shares remain a far cry away from all-time highs captured during the height of the Covid-19 pandemic and meme stock craze , which is the subject of the recent film ” Dumb Money .” “Given the proliferation of multiple streaming services over the last several years, we see downside risk to the global box office going forward,” analyst Jason Bazinet said. “In addition, these recent industry developments suggest that the strategic role of exhibitors may be diminishing.” The analyst added that he foresees AMC using the cash from the equity raise to pay down roughly $2.1 billion of the company’s total debt. Bazinet added, however, that AMC common equity stock is still woefully overpriced. “At prevailing levels, we view AMC’s common equity as overvalued,” he said. — CNBC’s Michael Bloom contributed to this report.
