Shares of AMC Entertainment Holdings Inc. AMC,
met 3.8% in premarket trading on Tuesday, to extend the 14.9% rise from the previous session, which was fueled by New York Gov. Andrew Cuomo’s announcement that movie theaters of New York could open 25% capacity next week. Wedbush analyst Michael Pachter reiterated the neutral rating he had at AMC over the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We believe there is a significant accumulated desire to go to the movies, and this could add significantly to the AMC March / Q1 and Q2 results as New York cinemas are some of the best performing cinemas on their national circuit.” , said Pachter. wrote in a note to clients. He said the New York decision should attract other densely populated areas to reopen them. “That said, we wonder if the accumulated desire will lead to a demand, as people may remain reluctant to attend the cinema until they receive the vaccine or in the event that the transmission rate decreases significantly,” Pachter wrote. AMC is expected to report fourth-quarter results on or about March 4, but Pachter said the results will be a “non-event,” as it will focus on liquidity. Shares have risen to 209.0% to date, while the S&P 500 SPX,
has gained 3.2%.