IMAX (IMAX) Stock Forecast & Price Target

Imax Corp has demonstrated a significantly increasing market share in China, reaching a record 15% indexing on Hollywood titles, up from 9% five years prior. The company's performance during the Chinese New Year in 2025 was exceptional, generating $130 million in box office receipts, which is over 90% higher than the previous record, driven by a robust film slate and heightened consumer engagement. Furthermore, with expectations of AEBITDA margins reaching a minimum of 40% due to box office growth and operational efficiencies, Imax is well-positioned for a strong financial performance in 2025.

Imax Corp's F4Q24 results indicated a revenue of $93 million, which fell short of consensus estimates by nearly $10 million, primarily due to a disappointing Christmas season and ongoing weakness in the Chinese market. The company's operational challenges are highlighted by a decline in the backlog of screens from 450 to 440, along with a domestic opening weekend gross of $37.7 million that was significantly below anticipated figures. Furthermore, external economic conditions and a lack of blockbuster films suited for IMAX formats could adversely impact future revenues and demand for IMAX theater systems, amplifying the already noted underperformance in both domestic and international markets.