AMC Entertainment (NYSE:AMC) is the little retail stock that could. It has taken the year by storm thanks to fuel from r/WallStreetBets, going from potential victim of the Covid-19 pandemic to a serious force. The huge — and recent — gains in AMC are prompting a new dialogue: Just how high can AMC go? Analysts and Redditors alike are theorizing over their AMC stock price predictions.
AMC is a beneficiary of the Reddit retail push of January, which saw the theater chain rally beside GameStop (NYSE:GME). Between Jan. 26 and Jan. 27, the subreddit propelled AMC from just under $5 to over $19.
Since that date, price have ebbed and flowed. But in the last week, AMC is steadily climbing. News today that the company would bring in $230 million has served as a major upside catalysts.
Just like with GameStop, it seems the retail crowd is betting on a new-and-improved AMC.
AMC Stock Price Predictions: What’s the Ceiling?
AMC is thriving on Reddit now, with many posters on r/WallStreetBets rooting for the movie theater operator to come out of the pandemic stronger than ever. Additionally, AMC was able to leverage Redditor support to raise cash and avoid bankruptcy, also sweetening the story. Considering this, it’s nearly impossible to find a Redditor who is bearish on AMC. Almost everybody was bullish when one posed a question to the board: “Realistically, how high can AMC go?”
“There’s nothing realistic about any of this.”
“$500 minimum.”
“Realistically, Saturn.”
Analysts are diverging on the issue. The Street’s Bret Kenwell is on board with AMC for its upward swing. He is firm on the possibility of a further breakout up to $45, putting it near all-time high prices. Market Realist’s Ruchi Gupta is less willing to take a side. Gupta says AMC “doesn’t look to be a great fit for a long-term investment,” but says that “a short squeeze could play out for some time and continue to lift the stock.” According to TipRanks, Wall Street analysts have a consensus 12-month target of $6.44 on AMC. That implies nearly 80% downside from current levels.
AMC stock is currently up 23% on today’s session, with a trading volume of nearly 420 million shares. That is 300 million shares greater than average.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
