IMAX (IMAX) Stock Forecast & Price Target

Imax Corp has demonstrated significant growth potential, particularly in the Chinese market, where its market share for Hollywood titles rose to 15%, marking a notable increase from 9% over the past five years. The company recorded a remarkable performance during the Chinese New Year 2025, generating $130 million in box office receipts, which reflects a 90% increase from its previous record, attributed to an improved film slate and growing consumer engagement. Furthermore, with anticipations of a rebound in box office performance and an expected AEBITDA margin of 40%, Imax appears well-positioned for continued financial success in 2025.

Imax Corp experienced disappointing financial results for the fourth quarter of 2024, with reported revenue of $93 million falling short of the consensus estimate of $102.5 million, primarily due to weak holiday performance and a decline in the Chinese market. The company's domestic opening weekend performance of $37.7 million was significantly below industry expectations, and its backlog of 440 screens is a decline from the previous year's 450 screens, indicating potential challenges in future growth. Furthermore, ongoing economic conditions, the risk of inadequate intellectual property protection, and the lack of significant IMAX-friendly titles in the market further contribute to a negative outlook on the company's stock.