AMC-Carmike Merger Approved: AMC Is Now The Nation's Largest Movie Chain

AMC Entertainment Holdings Inc (NYSE: AMC)'s November has been a hit for the company. Shares are already up 10 percent in November following a record third quarter.

AMC is following its strong results with an approved merger deal with Carmike Cinemas, Inc. (NASDAQ: CKEC) to become the nation's largest movie theater chain with 8,218 screens. Shareholders of Carmike Cinemas, the fourth largest chain, approved a $1.2 billion buyout from AMC.

Analyst's Take

B. Riley & Co. analysts are confident that the successful vote will be a positive catalyst for AMC shares.

“Although AMC shares have moved higher by more than 8 percent over the past week following the report of Q3 results, we continue to believe a successful vote would represent a positive catalyst for AMC shares to move them even higher,” explained B. Riley analysts.

Analysts are also expecting continued improvement in box office trends in 2017/2018.

B. Riley has a Buy rating on AMC with a $40 price target and a Neutral rating and $32.75 price target on Carmike shares.

At last check, Carmike shares were flat at $34.05, and AMC shares were up 0.14 percent at $34.55.