AMC Entertainment (AMC) saw a 10% rally in shares after an upgrade to “Outperform” by Wedbush analyst Alicia Reese, with a new price target of $4. Despite a 19% drop from its year-to-date high, Reese recommends buying AMC for potential growth in the cinema chain.

Reese believes AMC’s premium screens in North America and expansion plans in the European Union and UK will drive market share growth through 2026. The stock is up over 20% from its YTD low and benefits from a rebounding Hollywood box office and recent debt restructuring.

Investors should be cautious despite the positive outlook, as AMC’s history of instability and meme stock status may pose risks. The consensus rating on AMC remains at “Hold” with a mean target of $3.12, indicating a potential 8% downside from current levels.

Read more at Yahoo Finance: Wedbush Is Betting Big on AMC Stock. Should You?