Naughty Flicks

Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuImax’s strong run of late may only be the beginning, according to Morgan Stanley. The investment bank initiated coverage of Imax with an overweight rating. It also put a $63 price target on shares, suggesting 18% upside from Wednesday’s close. “IMAX is becoming increasingly central to the moviegoing experience, with a growing network and broader film slate reinforcing a flywheel of more screens, more releases and higher box office revenue, driving strong earnings and [free cash flow] growth,” analyst Daniel Duran said Thursday in a note to clients. Imax specializes in technology, including high-powered film cameras and curved screens, that aim to make movies feel more immersive. IMAX 3M mountain IMAX 3-month chart The company’s box office is projected to hit $1.7 billion in 2028, up from $1.5 billion in 2026, per Morgan Stanley. Duran noted that cinemas are taking note of Imax’s popularity with moviegoers, particularly after the debut of “The Odyssey” in July. “The Odyssey,” which was entirely shot on Imax film, became the fastest film to surpass $200 million in box office sales in IMAX history, the company said in early August. “The Odyssey was a wake-up call for studios/theaters, highlighting the value of IMAX,” Duran wrote. He added, “studios/theaters lean into premium offerings as consumer demand for premium experiences continues. IMAX’s brand/tech positions it well to monetize on this trend.” Morgan Stanley’s call falls in line with consensus on Wall Street. Of the 14 analysts covering IMAX, 12 have a buy or strong buy rating on the stock, LSEG data shows. Shares are up more than 21% over the past three months.Read More