IMAX Corp (NYSE:IMAX) received a price target upgrade from Wedbush analysts following the company’s 2025 Investor Day, with the firm raising its price target to $46 from $39 and maintaining an 'Outperform' rating.
IMAX shares jumped more than 8% following the event, trading at about $38 in the early afternoon on Monday.
Wedbush highlighted several factors supporting the outlook for IMAX, including a projected uptick in the volume and quality of filmed-for-IMAX (FFI) titles from 2026 through 2028, which the analysts wrote “should drive greater market share gains.”
The firm also noted that IMAX’s global box office is increasingly reliant on a mix of local language and international releases, and that alternative content offerings are expected to boost revenue.
Expansion of the company’s global footprint further underpins Wedbush’s positive view. “IMAX remains on Wedbush’s Best Ideas List,” they wrote. “Driven by these factors, IMAX is poised to surpass 50% EBITDA margins by 2028.”
They also emphasized that the company’s premium valuation is “reasonable given the trifecta of 2026 FFI titles across geographies, global footprint expansion, and margin expansion.”
During the investor day, IMAX provided guidance for 2026, projecting global box office on IMAX screens of approximately $1.4 billion, up about 12% year-over-year. Wedbush noted this exceeded both its prior estimate of $1.31 billion and consensus expectations of $1.34 billion.
System installations are expected to grow by 8% year-over-year to between 160 and 175, above Wedbush’s 5% estimate and the consensus midpoint of 4%.
Adjusted EBITDA margins were projected in the mid-40% range, compared with Wedbush’s prior estimate of 46.1% and consensus of 40.7%.
Wedbush highlighted the company’s strategy as creating a “virtuous cycle” in which additional FFI and alternative content enhances the value of IMAX screens for theaters.
“This confluence of revenue growth drivers can easily lead IMAX to achieve its high single-digit to low double-digit revenue growth target by 2028, while expanding margins should contribute to IMAX achieving its new 2028 target for over 50% adjusted EBITDA margin,” the analysts wrote.
IMAX’s next near-term catalyst is the release of Avatar: Fire and Ash on December 19, which Wedbush noted could further support momentum in both box office and revenue growth.