Mike Hickey, an analyst from Benchmark Co., maintained the Buy rating on IMAX. The associated price target remains the same with $30.00.
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Mike Hickey has given his Buy rating due to a combination of factors that highlight IMAX’s strong market position and growth potential. The consideration of a joint premium format brand by some theater chains is seen as an acknowledgment of IMAX’s dominance rather than a competitive threat. IMAX’s brand equity, filmmaker loyalty, and consistent box office performance are unmatched, with the company delivering a significant portion of blockbuster grosses despite representing a small percentage of screens.
Additionally, the upcoming release of Christopher Nolan’s film, The Odyssey, which is shot entirely on IMAX cameras, underscores the brand’s cultural impact and demand. The financial model of IMAX is advantageous for exhibitors, as it boosts concession revenues, which are crucial for profitability. The U.S. remains a key growth market for IMAX, with increasing installations and potential for further expansion. The coexistence of branded premium large formats (PLFs) alongside IMAX is seen as beneficial for the industry, offering more choices to consumers and enhancing revenue opportunities for exhibitors.
In another report released on July 16, Barrington also maintained a Buy rating on the stock with a $32.00 price target.
Based on the recent corporate insider activity of 28 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.