Shares of AMC Entertainment Holdings Inc. AMC,
rose 3.8% in premarket trading on Tuesday, to extend the 14.9% rise from the previous session, fueled by New York Governor Andrew Cuomo’s announcement that New York City cinemas next week with can open a capacity of 25%. Wedbush analyst Michael Pachter echoed the neutral rating he had on AMC for the past 11 months, but said Cuomo’s announcement was a “ray of light” for the company. “We think there is a significant pent-up desire to go to the cinema, and this could potentially make a meaningful contribution to AMC’s March / Q1 and Q2 results, as AMC’s NYC theaters have some of the best performing. theaters are on the home circuit, ”wrote in a note to customers. He said NYC’s move should entice other densely populated areas to reopen. “That said, we wonder if the pent-up desire will result in demand, as people might remain reluctant to go to the movies until they get their vaccine, or in the event that the transmission speed drops significantly,” Pachter wrote. AMC is expected to report fourth quarter results on or around March 4, but Pachter said the results will be a “non-event” as the focus will remain on liquidity. The stock is up 209.0% so far, while the S&P 500 SPX,
has gained 3.2%.