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Investing.com - Rosenblatt raised its price target on IMAX Corporation (NYSE:IMAX) to $42.00 from $37.00 on Thursday, while maintaining a Buy rating on the cinema technology company. The stock has shown remarkable momentum, delivering a 66.5% return over the past year and currently trading near its 52-week high of $34.14.
The price target increase reflects IMAX’s strong third-quarter global box office performance, which Rosenblatt noted was "significantly ahead of expectations" and positions the company for another quarter of potential earnings upside. With its next earnings report scheduled for October 29, InvestingPro data shows the company maintains a healthy financial position with a "GOOD" overall health score.
Rosenblatt highlighted the upcoming fourth-quarter film slate as a catalyst for continued growth, specifically mentioning the next installment in the Avatar franchise among several potential box office hits.
Despite IMAX’s current box office success and strong upcoming film lineup, Rosenblatt observed that the stock trades at less than 9 times enterprise value to 2026 estimated EBITDA, suggesting potential undervaluation.
The new $42 price target is based on a 12 times EV/EBITDA multiple, which Rosenblatt noted remains "well below the mid-teens multiple the stock has seen historically."
In other recent news, IMAX Corporation reported a record global box office of $360 million in the third quarter, with domestic box office earnings reaching $143 million, marking a 28% year-over-year increase. This performance comes despite a broader U.S. industry decline of 11%, leading Benchmark to raise its price target for IMAX stock to $40 while maintaining a Buy rating. Additionally, IMAX has announced a new agreement with Apple Cinemas to expand its IMAX with Laser systems across the United States, including a return to Philadelphia in 2026 at the Riverview Plaza multiplex. This expansion will double their current partnership footprint.
In Australia, IMAX has rekindled its partnership with HOYTS Cinemas to install up to five new IMAX with Laser systems, with the first location set to open in Melbourne in 2025. Benchmark has also maintained a Buy rating and a $30 price target on IMAX stock, viewing potential premium format competition as a validation of IMAX’s growing influence. The firm noted that IMAX is on track to exceed third-quarter expectations, with a global box office already reaching approximately $240 million and trending toward surpassing the consensus estimate of $286 million for Q3 2025.
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