AMC Stock Pops. A Box-Office Rebound Could Bring More Gains.

Shares of AMC Entertainment have risen 22% over the past three months. (Jeenah Moon/Bloomberg)

AMC Entertainment Holdings stock has been steadily rising, and one Wall Street analyst sees no end to the good times.

Shares surged 9.4% to $3.48 on Thursday, its highest closing price since May 30, according to Dow Jones Market Data. Over the past three months, the stock has climbed nearly 25%. The S&P 500 rose 0.5%.

Benchmark analyst Mike Hickey raised his forecast for the movie chain’s earnings, citing “outsized potential upside.” Hickey said in a research note that he expects rising moviegoing demand and this year’s box-office rebound will attract visitors and bring in revenue with higher margins. He also praised AMC’s emphasis on customer loyalty through its membership programs and its use of premium screens like IMAX, which enhance the experience of visiting a theater.

“The exhibition landscape is showing signs of stabilization following pandemic and Hollywood strike disruptions, and AMC’s positioning at the high end of the market should help it retain share as production volumes normalize and theatrical windows are reinforced,” Hickey wrote in a Wednesday research note. He reaffirmed a Hold rating on the stock.

Hits like Superman, F1 and Jurassic World Rebirth have pushed summer ticket sales to surpass last year’s totals by 16.5% so far, according to Sunday data from the media analytics firm Comscore. So far this year, total domestic box office revenue is $4.7 billion, 15% higher than it was at this time last year.

Hickey anticipates AMC’s domestic ticket sales will increase by 37% year over year in the second quarter, which is well above his prior estimate of 12.5%. He also forecast revenue will increase to $1.3 billion, up from his previous call for $1.1 billion. Last quarter, AMC reported $862.5 million in revenue, down from $951.4 million in last year’s first quarter.

The movie chain will report its second-quarter earnings before the market opens on August 8.

Benchmark isn’t the only one who is more upbeat about the movie theater chain. Last week, a team of Wedbush analysts led by Alicia Reese upgraded AMC stock to Outperform from Neutral. It was the first rating equivalent to Buy in more than five years.

With coming releases like Smurfs and The Fantastic Four: First Steps —updates of tried-and-true franchises that are likely to bring in customers—AMC could continue to pop.

Write to editors@barrons.com.