IMAX Corp (NYSE:IMAX) received a price target increase from Wedbush to $54 from $46, with the firm reiterating its Outperform rating as it expects continued growth from a stronger film pipeline, market share gains and global expansion.
The analysts wrote that IMAX remains on Wedbush’s Best Ideas List as the company benefits from an increase in the volume and quality of films produced for IMAX, a broader mix of local-language and global releases, expanded alternative content offerings and further international footprint growth.
“IMAX remains on Wedbush’s Best Ideas List given our view that it is benefitting from an uptick in volume and quality of filmed-for-IMAX titles in the second half of 2026 through 2028, which is driving market share gains,” the analysts wrote.
Wedbush highlighted IMAX’s second-quarter results as evidence of the strength of its business model, noting that the company exceeded expectations despite weaker Chinese box office performance and a modest domestic share decline during a quarter with a heavier focus on family films.
“IMAX’s results demonstrated the quality of its business model that handily beat expectations despite a shortfall in its Chinese box office and a modest domestic share loss in a quarter heavier on family fare,” the analysts wrote.
IMAX reported second-quarter revenue of $103 million, up 12% year over year and above Wedbush’s and consensus estimates of $94 million. Adjusted EBITDA came in at $45 million, ahead of Wedbush’s estimate of $39 million, driven by higher installations, improved margins and operating expense leverage.
The analysts wrote that additional installations during the quarter supported results and helped ease concerns around IMAX’s ability to reach its 2026 box office target of $1.4 billion, given the strength and diversity of its upcoming release slate.
Wedbush also highlighted IMAX’s profitability outlook, writing that the company’s target of achieving EBITDA margins above 45% in 2026 and surpassing 50% by 2028 now appear conservative.
“IMAX’s 45% plus EBITDA margin target for 2026 and guidance to surpass 50% EBITDA margins by 2028 now appear conservative,” the analysts wrote.
Looking ahead, Wedbush wrote that the next phase of IMAX’s growth story will focus on improving the timing and flow of major film releases. The analysts noted that while 2026 includes several major IMAX titles, including The Odyssey and Dune 3, a crowded release schedule has limited the ability of studios and IMAX to maximize overall box office performance.
“Focus will now shift to the next leg of IMAX’s growth story: better orchestrating the flow of the annual release slate,” the analysts wrote.
Wedbush wrote that the 2027 release schedule already appears less crowded, as IMAX has become an increasingly important partner for studios across genres, languages and geographies. The analysts added that improved release timing, market share gains and international expansion provide additional opportunities for growth.
The revised $54 price target is based on a 13 times enterprise value-to-EBITDA multiple applied to Wedbush’s updated 2028 EBITDA estimate, compared with a previous 12 times multiple. It also implies upside from current levels of about $45.
Wedbush also noted potential upside if IMAX were to attract acquisition interest, writing that the company’s combination of a globally recognized premium brand, an asset-light licensing model and a structurally expanding earnings profile could make it attractive to a potential buyer.