Goldman Sachs analyst Stephen Laszczyk upgraded the rating on IMAX to a Hold today, setting a price target of $34.00.
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Stephen Laszczyk has given his Hold rating due to a combination of factors including the potential for IMAX’s strategic value in the media industry and the company’s ability to sustain its momentum. The upgrade from Sell to Neutral reflects an increased price target, which is now set at $34, up from $22, due to higher target multiples and a new M&A valuation approach.
The future performance of IMAX’s stock is expected to be influenced by the success of major film releases like Avatar 3, the company’s continued expansion of screen installations, and its execution on margin expansion. Additionally, the company’s capability to convert EBITDA into Free Cash Flow will be crucial. Insights into management’s strategies on these fronts are anticipated at the upcoming investor day on December 4 in California.
Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IMAX in relation to earlier this year.