IMAX Corporation ( NYSE: IMAX ) rose more than 2% in premarket trading on Friday as Wedbush Securities added the company to its best ideas list for a number of reasons, including the upcoming film slate, including Black Panther: Wakanda Forever , and a rebound in the Chinese economy.
Analyst Alicia Reese, who has an outperform rating and $20 price target on IMAX ( IMAX ), noted that the company is also likely to benefit from consumers' increased focus on "premium theatrical amenities," as well as the push towards "theatrical alternative content" and the fact it is likely "well-insulated" from theater closures.
"IMAX is favorably positioned within theatrical exhibition as its success is solely dependent on blockbusters, which are driving the lion’s share of global box office," Reese wrote in a note to clients. "Coupled with IMAX’s global screen growth potential, IMAX’s revenue should continue to expand for the next several years."
Reese also noted that IMAX ( IMAX ) has started to position itself for digitally-broadcast live entertainment, which could drive "incremental attendance" in further years. And if China's box office were to rebound faster than estimates, there would be "meaningful upside" to estimates.
Late last month, IMAX ( IMAX ) posted a surprise third-quarter loss and only met revenue expectations .
For further details see:
IMAX rises as Wedbush adds to best ideas list on upcoming film slate, rebound in China