IMAX’s recent momentum may be only the beginning, Morgan Stanley said after initiating coverage with an Overweight rating and a $63 price target. The target implies approximately 18% upside from the stock’s Wednesday close.
Analyst Daniel Duran described IMAX as an increasingly central part of the moviegoing experience. The company’s expanding theater network and broader film slate are reinforcing a cycle of more screens, additional releases and higher box-office revenue, supporting earnings and free-cash-flow growth.
IMAX develops immersive cinema technology, including high-powered film cameras and large curved screens designed to draw audiences into the theatrical experience.
Morgan Stanley projects IMAX box-office revenue will reach $1.7 billion in 2028, compared with $1.5 billion in 2026. Cinema operators have taken notice of the company’s popularity, particularly following the July release of “The Odyssey.”
Shot entirely on IMAX film, the movie became the fastest film to surpass $200 million in cumulative IMAX box-office revenue, according to the company. Duran said the success demonstrated the value of IMAX to studios and theater operators, while stronger demand for premium entertainment positions the company well to benefit from the trend.
The analyst’s view aligns with Wall Street consensus. According to LSEG data, 12 of the 14 analysts covering IMAX have Buy or Strong Buy ratings. The shares have gained more than 21% over the past three months.
