Morgan Stanley has begun coverage of Imax, assigning an overweight rating and setting a price target of $63, which implies an 18% upside from the stock's recent close. Analyst Daniel Duran highlighted that Imax is becoming integral to the cinema experience, supported by a growing network and an expanding film slate that enhances box office revenue and earnings.
The company's box office revenue is projected to rise to $1.7 billion by 2028, up from $1.5 billion in 2026. Duran pointed out that the success of 'The Odyssey,' which became the fastest film to exceed $200 million in IMAX box office sales, underscores Imax's value to studios and theaters.
He noted that as consumer demand for premium experiences grows, Imax's brand and technology position it well to capitalize on this trend. This positive outlook aligns with the broader consensus on Wall Street, where 12 out of 14 analysts recommend buying the stock. Imax shares have already increased by over 21% in the past three months