B.Riley FBR Thinks IMAX Corp’s Stock is Going to Recover

In a report released today, Eric Wold from B.Riley FBR reiterated a Buy rating on IMAX Corp (IMAXResearch Report), with a price target of $34. The company’s shares closed yesterday at $18.71, close to its 52-week low of $18.13.

Wold wrote:

“We are revisiting IMAX Corporation (IMAX) after the company’s EV-to-NTM EBITDA multiple has now dropped below the exhibitor group’s average multiple for only the second time in the past decade. And this has occurred even though, we believe, IMAX is not only the best positioned company to benefit from a strong film slate and box office outlook for 2019+, but would also have an even lower correlation to any possibility of domestic economic weakness than the remainder of the exhibitor group (which, we believe, was the cause for the similar downward move ten years ago). More importantly, we expect IMAX to benefit from similar trends over the next 12-18 months as those that helped drive a massive 1,200% move in IMAX shares following the valuation multiple trough ten years ago.”

According to TipRanks.com, Wold is a 1-star analyst with an average return of -1.0% and a 39.4% 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 $28 average price target, implying a 49.7% upside from current levels. In a report issued on November 30, MKM Partners also maintained a Buy rating on the stock with a $27 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.

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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.

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