AMC Entertainment Stock Drops After Goldman Sachs Downgrade

Goldman Sachs Gives AMC Entertainment New Price Target of $175

AMC Entertainment Holdings Inc.'s stock tumbled 30% Wednesday after the cinema operator received a downgrade from Goldman Sachs.

The investment bank lowered its rating on AMC Entertainment from "buy" to "neutral" and cut its price target from $225 to $175 per share. Goldman Sachs cited concerns about the company's high debt levels and weak cash flow as reasons for the downgrade.

AMC Entertainment has been struggling in recent months as the COVID-19 pandemic has kept moviegoers away from theaters. The company has been forced to close some of its theaters and lay off employees.

The downgrade from Goldman Sachs is the latest blow to AMC Entertainment. The company's stock has lost more than 70% of its value since the start of the year.