This analyst loves IMAX stock

Roth Capital Markets analyst Eric Handler reiterated a “Buy” rating and US $40.00 target price on IMAX (IMAX Stock Quote, Chart, News, Analysts, Financials NYSE:IMAX) in an Oct. 28 earnings analysis, saying the company is “pulling all the right levers” as its content slate strengthens well into 2027.

Handler said IMAX remains his “top small-cap idea” in Media & Entertainment, driven by a rising global box-office cycle, continued expansion of its “Filmed for IMAX” strategy, and growing contributions from local-language and alternative content. He added that system-installation momentum and screen growth support further margin expansion.

IMAX reported third-quarter revenue of US$107-million, up 17% year-over-year, and Adjusted EBITDA of US$52-million, up 34%. Both exceeded Handler’s and consensus estimates of US$105-million and US$50-million (consensus US$45-million), respectively, showing what he described as “meaningful operating-leverage capability.”

Handler said IMAX’s stable cost structure allows incremental Adjusted EBITDA margins of more than 85% when quarterly global box office exceeds US$250-million. Cloud-enabled DMR processing and expected AI production-efficiency gains should further support scalability.

The analyst said IMAX continues to broaden its content base. Through three quarters of 2025, the company released 17 alternative-content events versus 11 in the same period last year, including concert films and specialty theatrical releases.

He also pointed to a growing slate of documentaries in 2026 and 2027, which may deliver streaming-rights upside similar to IMAX’s Blue Angels sale to Amazon Prime earlier this year.

Cinemark Holdings recently agreed to add and upgrade 17 IMAX locations across the U.S. and Latin America, marking the exhibitor’s first new-build deal with IMAX since 2007. Handler said the agreement could “represent the first of several future system deals.”

Handler forecasts IMAX will generate US$182.3-million in Adjusted EBITDA on US$409.7-million of revenue in fiscal 2025, improving to US$200.2-million on US$437.1-million in fiscal 2026. His prior estimates were US$182.4-million/US$410.0-million for 2025 and US$201.3-million/US$443.4-million for 2026.

“We continue to see abundant catalysts and would be buyers on any weakness,” he said. “The company’s content cycle is on an expected upswing through at least 2027.”

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