IMAX (IMAX) Stock Forecast & Price Target

Imax Corporation is experiencing a significant upward trajectory, as evidenced by its record market share in China, where indexing on Hollywood titles has notably increased to 15%. The company's outstanding performance during the Chinese New Year in early 2025, with box office receipts soaring to $130 million—over 90% higher than the previous record—highlights the effectiveness of its improved film slate and growing demand for premium formats. Additionally, the anticipated AEBITDA margin of at least 40%, driven by box office growth and operational efficiencies, underscores Imax's strong financial positioning moving forward.

Imax Corporation's financial outlook appears negative due to its fourth-quarter revenue of $93 million, which fell short of the consensus estimate of $102.5 million, primarily driven by weaker holiday performance and ongoing challenges in the Chinese market. Furthermore, the company reported a decline in its backlog of screens, decreasing from 450 to 440 year-over-year, which may signal a stagnation in future growth opportunities. The underperformance of significant Hollywood releases, combined with a lack of major IMAX-friendly films in China and evolving economic conditions, could adversely affect both revenue streams and demand for new theater systems.