B.Riley FBR Remains a Buy on IMAX Corp (IMAX)

By Ryan Adsit

In a report released today, Eric Wold from B.Riley FBR reiterated a Buy rating on IMAX Corp (NYSE: IMAX), with a price target of $34. The company’s shares closed yesterday at $19.71, close to its 52-week low of $18.98.

Wold noted:

“Before the open on Thursday (10/25), IMAX Corporation (IMAX) reported 3Q18 results that exceeded expectations for both revenues and adjusted EBITDA—even with a handful of system installs delayed into 4Q. With IMAX shares trading off by 6% (vs. the midst of a healthy overall tape, we are struggling to find a rationale for the move given a healthy system backlog that continues to expand, management confirming additional reductions in the cost structure that set up a return, by our projections, to a 40% EBITDA margin for the first time since 2010, strengthening box office trends in China with same-store sales turning positive and a robust film slate on tap for 2019 with IMAX poised to gain box office share.”

According to TipRanks.com, Wold is a 5-star analyst with an average return of 9.7% and a 54.2% success rate. Wold covers the Services sector, focusing on stocks such as Reading International Inc, Cinemark Holdings Inc, and National Cinemedia.

The word on The Street in general, suggests a Strong Buy analyst consensus rating for IMAX Corp with a $32 average price target, representing a 62.4% upside. In a report issued on October 15, Wedbush also maintained a Buy rating on the stock with a $29 price target.

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Based on IMAX Corp’s latest earnings release for the quarter ending September 30, the company reported a quarterly net profit of $5.02 million. In comparison, last year the company had a GAAP net loss of $850K.

Based on the recent corporate insider activity of 37 insiders, corporate insider sentiment is neutral on the stock.

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IMAX Corp. is an entertainment technology company, which engages in the business of motion picture technologies and presentations. It operates through following business segments: Network Business, Theater Business, New Business, and Other.