Benchmark has increased its price target for Imax Corp. (IMAX) to $24 from $23 following the company's impressive box office performance. In the third quarter, Imax's global box office (GBO) exceeded expectations, generating $347 million compared to the projected $237 million. This represents a remarkable 141% of its pre-pandemic performance for the same quarter, demonstrating the ongoing recovery of Imax.
The Potential for Further Recovery in China
According to Benchmark analyst Mike Hickey, China could present additional recovery potential for Imax in 2024. Moreover, both domestic and international markets are projected to either match or surpass their pre-pandemic box office benchmarks.
Record-Breaking Success with "Oppenheimer"
Imax recently achieved tremendous success at the box office with the summer blockbuster "Oppenheimer," which earned $170 million in global box-office sales across Imax's network. The film's debut in China contributed to its success and made it the fifth-highest-grossing Imax release. Imax also experienced its best-ever July box office performance, largely fueled by the popularity of "Oppenheimer."
Exciting Releases and Future Prospects
"Oppenheimer," directed by Christopher Nolan and filmed using Imax cameras, was among the notable movie releases of the summer. Another highly anticipated film, "Barbie," starring Margot Robbie and Ryan Reynolds, hit Imax screens for a limited engagement on September 22, featuring additional post-credit footage.
Stock Performance
Imax shares declined by 2.7% on Monday, while the S&P 500 index rose by 0.4%.
