IMAX (IMAX) is poised to benefit from multiple factors, including a growing pipeline of high-quality Filmed-for-IMAX titles through 2028, a diversified mix of local and global content, the expansion of alternative content, and an increased global footprint, Wedbush said in a note Thursday.
Given the factors, the brokerage expects the company to surpass 50% earnings before interest, taxes, depreciation, and amortization margins by 2028.
IMAX's Q4 results and increased global market share highlight re-accelerated growth and operating leverage, which allows the company to reinvest in expansion while prioritizing shareholder returns, the firm said.
The company's premium valuation is reasonable given the combination of titles, expanding footprint, and operating leverage, Wedbush said.
Wedbush reiterated its outperform rating and $46 price target on the stock.
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