Brigantine Advisors Defends IMAX (IMAX) After Yesterday's Sell-Off On AMC Competition Fears
IMAX Hot Sheet
Rating Summary:7 Buy, 3 Hold, 0 Sell
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Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Analysts at Brigantine Advisors are defending Imax (Nasdaq: IMAX) after yesterday's nearly 10% slide due to a competitive threat from joint venture partner AMC, which announced a 3D theater with a 20% larger screen and enhanced sound.
The firm said, "we believe the market has over-reacted to the AMC news and would be buyers of the stock at current levels."
The firm also notes "the runaway success of Avatar, likely followed by strong numbers from Tim Burton’s Alice in Wonderland, which opens this weekend, has shown exhibitors the power of the Imax joint venture model and reinforced the Imax brand with consumers. We believe this will be apparent in the Q4 results, which will be reported on March 11th where the company is likely to surpass both our numbers and the consensus. In Q4 we are looking for $39.6M/$0.07 and the consensus is $45.3M/$0.08."
The firm reiterated their Buy rating and $14 price target.
The firm said, "we believe the market has over-reacted to the AMC news and would be buyers of the stock at current levels."
The firm also notes "the runaway success of Avatar, likely followed by strong numbers from Tim Burton’s Alice in Wonderland, which opens this weekend, has shown exhibitors the power of the Imax joint venture model and reinforced the Imax brand with consumers. We believe this will be apparent in the Q4 results, which will be reported on March 11th where the company is likely to surpass both our numbers and the consensus. In Q4 we are looking for $39.6M/$0.07 and the consensus is $45.3M/$0.08."
The firm reiterated their Buy rating and $14 price target.
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