IMAX: Asset-Light Premium Platform Poised for Margin Expansion, Global Growth, and Upside to $42 Target

Mike Hickey, an analyst from Benchmark Co., reiterated the Buy rating on IMAX. The associated price target remains the same with $42.00.

Mike Hickey has given his Buy rating due to a combination of factors tied to IMAX’s strengthening business model and growth outlook. He points to structurally higher box office share, a record 2025 performance, and expanding AEBITDA margins that are expected to move into the low-to-mid 40% range, with further improvement into 2028, as evidence that the company has reset its long-term earnings potential. A key driver is an exceptionally strong and IMAX-focused film lineup for 2026 and 2027, including major franchise titles and films shot specifically for IMAX formats, which is expected to boost per-screen performance, utilization, and overall profitability. In addition, he highlights that IMAX’s premium, asset-light platform delivers strong free cash flow conversion and operating leverage, making it increasingly differentiated from traditional movie exhibitors.
Hickey also underscores the company’s global expansion, noting a larger total addressable market of roughly 4,500 potential IMAX zones, robust installation plans through 2026, and a sizeable contracted backlog that supports sustainable, recurring revenue growth. He views IMAX’s deepening ties with major streaming platforms such as Netflix, Apple, and Amazon as strategically important, with new release models like the IMAX-exclusive global run of Narnia broadening the content pipeline and reinforcing IMAX’s position as a premier theatrical partner. From a valuation standpoint, his $42 price target, based on a 14x FY26 EBITDA multiple and expectations for mid-40% AEBITDA margins in 2026 and above 50% by 2028, signals meaningful upside from current levels. He further notes that the company’s asset-light structure, strong studio and streamer relationships, and role as a premium theatrical platform may create additional long-term strategic value, including potential acquisition interest at materially higher share prices.