Wells Fargo maintains Overweight rating on IMAX stock despite Q3 adjustment

Investing.com - As premium entertainment experiences continue reshaping the theater industry landscape, Wells Fargo (NYSE:WFC) has reiterated its Overweight rating and $30.00 price target on IMAX Corporation (NYSE:IMAX), despite making adjustments to its quarterly estimates.

The firm lowered its third-quarter global box office and adjusted EBITDA estimates by 6% and 9% respectively, while slightly increasing fourth-quarter projections by 3% and 1%.

Wells Fargo remains bullish on IMAX’s second-half outlook, citing a slate filled with "Filmed For IMAX" (FFI) releases through November, with particular optimism for July releases and a fourth quarter that "has the potential to deliver a top-3 GBO quarter on record."

The firm’s fiscal 2025 EBITDA estimate was reduced by $1 million to $154 million, though IMAX remains Wells Fargo’s "favorite name to play the shifting trend to premium theater experiences."

Key discussion topics for upcoming earnings calls are expected to include IMAX’s share gains driven by its FFI slate, the state of China’s box office following a recent slowdown, and installation trends across different regions ahead of "Avatar: Fire & Ice" releasing at year-end.

In other recent news, Walt Disney (NYSE:DIS)’s stock price target was raised by both MoffettNathanson and Guggenheim to $140. MoffettNathanson maintained a Buy rating, citing the potential growth of Disney’s Direct-to-Consumer business and park attendance resilience despite new competition. Guggenheim also upheld a Buy rating, attributing their price target increase to improved operating expense forecasts and better-than-expected sports advertising revenue. Additionally, Disney and British broadcaster ITV (LON:ITV) announced a collaboration to share a selection of each other’s shows on their streaming platforms, aiming to attract new audiences. In another development, A+E Global Media, a joint venture between Disney and Hearst, is exploring strategic options, including a potential sale or merger, as the cable television market undergoes significant changes. Guggenheim’s updated financial outlook for Disney includes a fiscal third-quarter segment operating income forecast of $4.5 billion, slightly higher than previous estimates. These developments reflect ongoing strategic adjustments and partnerships as Disney navigates the evolving media landscape.

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